How Can Section 179 Help Your Business?

Section 179 (2025 Tax Year)

Section 179 allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the 2025 tax year. Instead of depreciating assets over several years, Section 179 enables companies to write off the entire amount in year one—dramatically reducing taxable income and improving cash flow when investing in new equipment.

2025 Section 179 Limits

• Maximum Section 179 deduction: $2,500,000
• Phase-out begins: $4,000,000 in total qualifying equipment purchases
• Complete phase-out: approximately $6,500,000

This means most small and mid-size businesses can deduct the full purchase price of qualifying AXCS equipment—such as scissor lifts, vertical masts, booms, and telehandlers—up to the $2.5M limit. Once your total purchases exceed $4M, the Section 179 deduction begins to decrease dollar-for-dollar.

What Equipment Qualifies?

Section 179 covers most tangible business equipment, including:

• New or used construction equipment
• Electric and hydraulic scissor lifts
• Telehandlers and material handlers
• Aerial lifts, booms, and vertical mast lifts
• Business vehicles and machinery

Equipment must be used more than 50% for business and must be “new to you,” meaning used equipment still qualifies as long as it’s the first time your business is putting it into service.

Placed-In-Service Requirement

To take the Section 179 deduction for the 2025 tax year, qualifying equipment must be:

• Purchased or financed in 2025
• Placed in service by December 31, 2025 (ready for use on the jobsite)

Many businesses utilize financing or leasing to take the full deduction immediately while spreading payments over time. As long as the equipment is placed in service during 2025, it generally qualifies.

Bonus Depreciation (2025)

Under 2025 tax rules, businesses may also access 100% bonus depreciation for many types of qualifying equipment placed in service during the year. Bonus depreciation applies after Section 179 is used and can significantly lower the remaining taxable amount.

Bonus depreciation is especially valuable for companies that exceed the Section 179 spending limits or want to maximize first-year deductions on large fleet expansions.

Talk to Your Tax Advisor

Section 179 is one of the most powerful tax incentives available to equipment buyers—especially for companies planning to expand operations, upgrade fleets, or replace aging machinery in 2025.

This information is general guidance only and should not be considered tax or legal advice. Always consult your accountant or tax advisor to confirm eligibility for your specific situation.