Disclaimer: We are not tax professionals, and this information is intended for educational and informational purposes only. Please consult a qualified tax advisor to understand how Section 179 and other tax provisions pertain to your specific circumstances.
Section 179 is a tax regulation that allows businesses to deduct the full cost of qualifying equipment in the year it is purchased.
In simpler terms, if you buy new or used forestry equipment, construction machinery, or cranes before the end of the year, Section 179 enables you to lower your income by the entire cost of that equipment this year, with certain conditions (For instance, the equipment must be put into operation this year).
Businesses are continually encouraged to acquire and install capital equipment. The One Big Beautiful Bill Act of 2025 (OBBBA) introduced significant modifications to both Section 179 and bonus depreciation. These amendments take effect in 2025 and, when applied together, may permit businesses to deduct up to 100% of capital purchases.
Prior to the OBBBA, the government limited the Section 179 deduction for business taxpayers to $1,250,000, with a phase-out beginning at $3,130,000. The new legislation has increased the deduction limit to $2.5 million and the phase-out threshold to $4 million, with annual adjustments for inflation. In 2025, the benefits of the Section 179 deduction will be available to small and mid-sized businesses that invest less than $6.5 million annually in equipment.
Interested in acquiring new or used heavy machinery or equipment? Reach out to your nearest Triad Machinery today. We’re here to assist you.
