Section 179 Just Got an Upgrade: Here’s What It Means for Your Next Equipment Purchase
Smart investments are the key to staying competitive. Whether you’re expanding your fleet or replacing aging machines, there’s good news: thanks to a recent federal update, buying equipment in 2025 comes with even bigger tax advantages.
The newly passed “Big Beautiful Bill” significantly expands the Section 179 deduction limit, giving businesses like yours the chance to write off more equipment costs upfront and boost cash flow while building out the fleet you need.
Let’s break down what’s changed and how Ascendum Machinery can help you take full advantage.
What’s New for Section 179 in 2025?
Section 179 has long been a favorite tax incentive among business owners. It allows you to deduct the full purchase price of qualifying equipment the year it’s put into service, rather than depreciating it over time.
This year, thanks to the new legislation, the deduction limit has doubled to $2.5 million, with a spending cap of $5 million. That’s a major win for contractors, developers, and operators looking to invest in their business and reduce their tax liability.
Key 2025 Section 179 Highlights:
- Deduction limit: $2.5 million
- Equipment spending cap: $5 million
- Must be purchased and put into service in 2025
- Equipment must be used for more than 50% for business purposes
- Applies to new or used equipment, attachments, and qualifying software
Plus Bonus Depreciation is Back at 100%
As part of the same bill, 100% bonus depreciation has returned, providing another huge benefit for businesses. Bonus depreciation allows you to deduct the entire cost of eligible equipment in the year it’s placed into service, even beyond the Section 179 limit.
That means you can:
- Offset taxable income more aggressively
- Invest in large or high-cost assets
- Free up cash flow for other operational needs
Unlike Section 179, bonus depreciation can create a net loss, which can be carried forward to future tax years.
What Qualifies?
You don’t need to overthink what counts; most of the equipment we sell at Ascendum qualifies for both Section 179 and bonus depreciation, including:
- Excavators, Articulated Haulers, Wheel Loaders, Pavers, and Dumpers
- Portable power and site prep solutions
- Attachments and upgrades
- Business-use software and tools
Example: How the New Deduction Helps Your Bottom Line
Let’s say you purchase a Volvo EC140E crawler excavator for $152,400, a reliable, fuel-efficient machine built for tough jobs and everyday productivity.
With the expanded Section 179 deduction, you could write off the full purchase price in 2025. In a 25% tax bracket, that’s a potential tax savings of $38,100, effectively reducing your real cost to just $114,300.
That’s a smart way to grow your fleet, boost cash flow, and invest in the future of your business, all while tackling the work ahead with confidence.
How to Claim the Deduction
It’s simpler than you might think. Just make sure your equipment:
- Is purchased and placed into service by December 31, 2025
- Is used primarily for business
- Is documented (keep invoices, service dates, and descriptions of use)
To claim the deduction, you or your CPA will need to complete IRS Form 4562 with your return. Bonus depreciation is applied automatically unless you opt out.
Make 2025 the Year Your Fleet Works Harder (and Costs Less)
From high-performance construction machines to jobsite-ready attachments, Ascendum Machinery is here to help you make equipment investments that pay off, on your jobsite and on your balance sheet.
With new tax advantages and a full inventory of top brands and support services, there’s never been a better time to upgrade your fleet.
We’re more than an equipment dealer; we’re your ally in building a smarter, more profitable future.
**Disclaimer: The information in this document is for example purposes only. Ascendum Machinery, including its owners, agents, employees, affiliates, suppliers, and partners, are not tax advisors. This document is not intended to offer any tax advice. Please consult with qualified tax professionals concerning your specific situation.**
