A sole proprietor, partnership, or corporation is eligible to receive a substantial deduction for qualified tangible property in the year it is put into service, as long as these qualifying assets are utilized for business purposes for more than half of the time. It’s crucial that your equipment is both received and actively being used by December 31, 2025.

In 2025, you have the potential to deduct an amount of up to $1,160,000 for eligible equipment that you acquire and start using. Additionally, there is an 80% bonus depreciation available for the portion of the cost that falls between $1,160,000 and the expenditure limit of $4,050,000.

Utilizing Section 179 can potentially reduce your tax liability to the government, freeing up cash that can be allocated for various other business requirements.

Capital Leases and Equipment Finance Agreements can qualify for the Section 179 deduction. This means that even with minimal payments in 2025 for your new equipment, you may still have the opportunity to write off up to $1,160,000 of the purchase price and 80% of the value that exceeds this initial threshold, up to the specified spending limit.