Maximize Your Tax Savings in 2025 with Section 179: A Smart Move for Construction Equipment Buyers

As a trusted heavy equipment dealer, we know that purchasing machinery is a major investment for construction businesses. That’s why we’re excited to share how Section 179 of the IRS tax code can help you save big on your 2025 taxes when you buy or finance qualifying equipment.

What Is Section 179?

Section 179 allows businesses to deduct the full purchase price of qualifying equipment—like excavators, loaders, and work trucks—during the same tax year the equipment is put into service. Instead of spreading depreciation over several years, you get the full deduction up front, which can significantly reduce your taxable income.

2025 Limits: Bigger Deductions Than Ever

For 2025, the Section 179 deduction limit has increased to $2.5 million, with a phase-out beginning at $4 million in total equipment purchases. That means you can deduct up to $2.5 million in qualifying purchases, and still benefit from bonus depreciation if you exceed that amount.

Bonus depreciation is also back at 100%, which means even if your purchases go beyond the Section 179 cap, you can still deduct the full cost of additional equipment. This applies to both new and used equipment, giving you more flexibility in your buying decisions.

What Kind of Equipment Qualifies?

Most of the equipment we sell qualifies for Section 179, including:

  • Earthmoving machines like bulldozers, graders, and excavators
  • Skid steers, compact track loaders, and backhoes
  • Work trucks and vehicles over 6,000 lbs GVWR
  • Generators, compressors, and other jobsite essentials
  • Office equipment and software used in your business

As long as the equipment is used more than 50% for business purposes and is placed into service by December 31, 2025, it qualifies.

How This Helps Your Bottom Line

Let’s say you purchase a $150,000 loader this year. With Section 179, you can deduct the full $150,000 from your taxable income. If your business is in a 30% tax bracket, that’s a $45,000 tax savings—money you can reinvest into your operations, workforce, or additional equipment.

This kind of upfront savings can make a huge difference, especially for growing companies looking to expand their fleet or upgrade older machines.

Financing Still Qualifies

One of the best parts? You don’t have to pay cash to benefit. Equipment financed through loans or leases still qualifies for Section 179, as long as the equipment is placed into service before the end of the year. That means you can start using your new machine right away and still claim the full deduction—even if you’re making payments over time.

Don’t Miss the Deadline

To take advantage of Section 179 for the 2025 tax year, your equipment must be purchased or financed and in use by December 31, 2025. We recommend planning ahead and working with your accountant to make sure your purchases align with your tax strategy.

Let’s Talk Strategy

If you’re considering adding to your fleet this year, now is the time to act. Our team is here to help you find the right equipment and guide you through the financing process. We’ll make sure you get the most value—not just from your machine, but from the tax benefits that come with it.

Reach out today to explore your options and make the most of Section 179 before the year ends.