Section 179 is one of the most valuable tax incentives available to small and medium-sized businesses. It was designed to help you invest in new equipment, grow your company, and reduce your tax liability all at the same time.
Under the extended limits established by the Protecting Americans from Tax Hikes Act, qualifying businesses can immediately deduct the full purchase price of new or used equipment instead of depreciating it slowly over several years.
How Section 179 Works in 2025
For the 2025 tax year, businesses can expense up to $2,500,000 in qualifying new or used equipment. The deduction begins to phase out after total equipment purchases exceed $4,000,000.
On top of that, 100% Bonus Depreciation remains available for qualifying assets acquired on or after January 19, 2025, meaning you can deduct the entire cost of your equipment with no cap on total purchases.
That means the machines you buy for your shop this year could deliver immediate financial benefits come tax season.
*Consult your tax professional for personalized guidance on how Section 179 applies to your business.
How To Qualify
To take advantage of Section 179, your equipment must be:
- Purchased and placed in service between Jan 1 and Dec 31, 2025
- Used for business purposes more than 50% of the time
- Within the deduction and spending limits for the year
Using it is simple—just buy (or finance) your equipment and file IRS Form 4562 when you do your taxes.
Why Businesses Choose Section 179
- Deduct up to $2.5 million in equipment costs
- Write off 100% of your purchase this year instead of over five years
- Preserve cash flow while gaining full tax benefits
- Write off the interest expense for financed equipment
- Pay off early without penalty
Invest in Growth, Not Taxes
Add a CNC router, laser system, or classic woodworking machine—Section 179 can make your next Laguna purchase even more rewarding.
Use our Tax Calculator to see your payment options!
