Through the Section 179 Expense Provision Now is the perfect time to purchase equipment, because the Section 179 deduction limit has more than doubled compared to last year, and Bonus Depreciation has increased from 60% to 100%. You can now deduct up to $2,500,000 for new and used equipment purchases in 2025. Are you spending more than $2,500,000? The remaining amount can be deducted through 100% bonus depreciation.
EXAMPLE:
Spend $3,000,000 on qualifying equipment:
1. Deduct $2,500,000 through Section 179
2. Remaining amount: $3,000,000 – $2,500,000 = $500,000
3. Deduct the remaining $500,000 through Bonus Depreciation
The total 2025 deduction for your equipment purchase is $3,000,000.
Exclusions apply. This information should not be considered tax advice. Consult your tax advisor or the IRS for additional information.
