Page 1: What Is Section 179 and Why It Matters
If you run a small business, there’s a special tax rule that can help you save a lot of money. It’s called Section 179 of the tax code. This rule lets businesses write off up to $2.5 million of equipment or upgrades annually using the expanded Section 179 rules. That means you don’t have to wait years to get your tax savings; you can take it all in one year.
Let’s say you buy new computers, tools, or even vehicles for your business. Instead of spreading out the tax write-off over many years, Section 179 lets you take the full deduction right away, in the same year you bought it. In 2025, this rule can be a huge help to growing businesses that want to upgrade fast.
The government expanded these rules to make it easier for companies to invest in their future. Now, more types of items qualify, even software and HVAC systems. As long as the items are used for business and put into service before the end of the year, you may qualify for this big deduction.
Page 2: How Section 179 Works in Simple Terms
Here’s how it works:
- You buy a piece of equipment, like a new printer, truck, or air conditioning unit, for your business.
- You start using it in 2025.
- You then use Section 179 to write off up to $2.5 million of equipment or upgrades annually using the expanded Section 179 rules.
Normally, businesses use something called “depreciation” to slowly write off costs over time, maybe 5 to 10 years. But with Section 179, you don’t have to wait. You take the full deduction right now, which helps your business save on taxes this year.
Here are some examples of what might qualify:
- Computers and laptops
- Office furniture
- Manufacturing machines
- Business vehicles (like vans or pickup trucks)
- Software
- Roofs, HVAC systems, and security alarms
Just remember: to qualify, the equipment must be used more than 50% of the time for business. Also, you have to buy and start using it by December 31, 2025.
Page 3: Why This Matters for Your Business
Using Section 179 wisely can mean big savings. Imagine this:
You spend $500,000 on new office equipment. Thanks to Section 179, you might deduct the full $500,000 from your taxes for 2025. That’s a massive break. And remember, you can write off up to $2.5 million of equipment or upgrades annually using the expanded Section 179 rules, so this is helpful even for growing mid-sized businesses.
This rule is especially helpful for businesses that:
- Need to upgrade tech
- Want to replace old machines
- Are moving to a bigger space
- Need better tools or faster computers
Talk to your tax advisor or accountant about it. You’ll want to make sure everything qualifies. But don’t miss out — the deadline is the end of the year.
To sum it up: write off up to $2.5 million of equipment or upgrades annually using the expanded Section 179 rules and give your business a head start in 2025.
