Section 179: Maximize Your Business Tax Savings
Section 179 is one of the most valuable tax incentives available to small and mid-size businesses. It allows you to deduct 100% of qualifying equipment, vehicles, and software in the year they are placed into service, offering immediate tax relief and major cash-flow advantages.
Section 179 Tax Savings Calculator
Section 179 allows businesses to deduct 100% of the cost of qualifying equipment in the year it’s placed into service — even if it’s financed.
What Is Section 179 and How It Works
Whether you operate a small business or manage a large operation, Section 179 can significantly reduce your taxable income and make equipment purchases more affordable.
Section 179 Financing Options
Section 179 allows businesses to deduct the full purchase price of qualifying equipment in the year it’s placed into service — even if the equipment is financed.
What Is Section 179?
Section 179 of the IRS tax code lets businesses write off the full cost of qualifying equipment upfront rather than depreciating it over several years. This accelerated deduction can significantly reduce taxable income, lower your effective equipment cost, and support faster business growth.
Keep More of Your Money with the Section 179 Deduction
2025 Section 179 Deductions: Quick Reference
- Section 179 Deduction Limit: $2,500,000
- Phase‑out Threshold: $4,000,000 (Deduction reduces dollar‑for‑dollar above this amount)
- Bonus Depreciation: 100% (available after Section 179 is applied)
- Business Use Requirement: More than 50% business use
- SUV/Truck Limit: $31,300 for vehicles over 6,000 lbs GVWR
- Deadline: December 31, 2025
Note: The Section 179 deduction phases out dollar‑for‑dollar when total qualifying purchases exceed $4,000,000 and is fully phased out at $6,500,000.
H.R.1 (effective for tax years beginning after December 31, 2024) doubled the Section 179 limit to $2,500,000, raised the phase‑out threshold to $4,000,000, and reinstated 100% bonus depreciation.
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What Equipment Qualifies for Section 179?
Most equipment used for business operations is eligible, including:
- Construction and heavy equipment
- Commercial vehicles, trucks, and vans
- Office equipment, computers, and software
- Manufacturing and industrial machinery
- Medical and professional equipment
- Certain building and property improvements
If the equipment is used more than 50% for business, it likely qualifies.
Keep More of Your Money with the Section 179 Deduction
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Why Section 179 Matters for Businesses
This deduction helps improve cash flow, reduce total tax liability, and make essential equipment purchases more affordable. Many businesses save 20–40% of the equipment cost through Section 179 tax deductions, depending on their tax bracket.
Calculate Your Section 179 Savings
What Equipment Qualifies for Section 179?
- Construction and heavy equipment
- Commercial vehicles, trucks, and vans
- Office equipment, computers, and software
- Manufacturing and industrial machinery
- Medical and professional equipment
- Furniture and business fixtures
- Certain building and property improvements
Maximize Benefits with Section 179 Qualified Financing
Did you know? Financing your equipment purchase not only preserves your cash flow but can also amplify your immediate tax savings. Discover tailored financing solutions designed for your business growth. Don’t let cash flow constraints hold you back. With strategic financing, you can:
- Section 179 Deduction Limit: $2,500,000
- Phase‑out Threshold: $4,000,000 (Deduction reduces dollar‑for‑dollar above this amount)
- Bonus Depreciation: 100% (available after Section 179 is applied)
- Business Use Requirement: More than 50% business use
Maximize Benefits with Section 179 Qualified Financing
Did you know? Financing your equipment purchase not only preserves your cash flow but can also amplify your immediate tax savings. Discover tailored financing solutions designed for your business growth. Don’t let cash flow constraints hold you back. With strategic financing, you can:
- Section 179 Deduction Limit: $2,500,000
- Phase‑out Threshold: $4,000,000 (Deduction reduces dollar‑for‑dollar above this amount)
- Bonus Depreciation: 100% (available after Section 179 is applied)
- Business Use Requirement: More than 50% business use
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I searched far and wide to find an effective and simple business banking solution that met my business needs and I found that in Bluevine. Their integrations and no fee structure were selling points for me.
Logan P.
LP Creative Media
Professional Services
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Frequently Asked Questions (FAQs)
No. You can still take the full deduction even if you finance or lease the equipment. Section 179 is based on the purchase price, not the payment method.
You must purchase AND place the equipment into service by December 31 of the tax year. Simply ordering it is not enough.
Yes. As long as you buy qualifying equipment and stay under the annual spending limits, you can use Section 179 each year.
Yes — as long as the equipment is new to your business and you place it into service this year. It does not need to be brand-new.
Yes, but the rules differ by vehicle type:
- SUVs & certain passenger vehicles: capped deduction
- Heavy vehicles (6,000+ lbs GVWR): often qualify for full deduction
- Work vans, box trucks, dump trucks, etc.: typically fully deductible
Yes. Section 179 cannot create a net loss.
However, bonus depreciation can, so many businesses combine the two.
Yes — if they are “Qualified Improvement Property,” such as:
- HVAC systems
- Roofing
- Fire protection
- Security systems
- Alarm systems
Structural expansions typically do not qualify.
No. The asset must be used in the United States more than 50% of the time.
Yes — as long as they have taxable income to offset.
If the business is not profitable yet, bonus depreciation may be a better fit.
Any business that pays U.S. taxes, including:
- LLCs
- Corporations
- S-Corps
- Partnerships
- Sole proprietorships
Even side businesses may qualify if the equipment is used more than 50% for business.
The equipment must be used primarily for business.
Example: If a vehicle is used 70% for business and 30% personally, only 70% of the cost is eligible.
Yes — but only off-the-shelf software that:
- Is available to the general public
- Has not been custom-coded
- Is used in your business
- Is one-time purchased or licensed
Cloud-based SaaS can qualify depending on structure, but custom development generally does not.
Then it does NOT qualify this year. You must be able to prove it was installed, working, and needed in your business before December 31.
Yes. Most businesses use:
- Section 179 for the first part of the deduction
- Bonus depreciation to deduct the rest
They work together, especially for high-cost equipment.
In many cases, yes — you can file an amended return if you missed a deduction.
Check with your accountant for rules on your specific year.
Yes — in a good way.
Lenders often like Section 179 because it:
- Improves cash flow
- Reduces tax burden
- Makes equipment more affordable
This can help with approvals.
Yes. Your new basis becomes:
Equipment Cost – Section 179 Deduction – Bonus Depreciation
This affects future depreciation or tax planning when you sell the asset.
You should maintain:
- Purchase documents
- Date placed into service
- Business-use percentage
- Serial numbers / VINs
- Proof of payment
- Financing or lease paperwork
Frequently Asked Questions (FAQs)
A: Yes – financing options are available that allow you to benefit from the full deduction.
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Velit sociosqu purus enim pharetra sed sem at iaculis. Felis ridiculus adipiscing dignissim eros pellentesque mus vitae litora. Felis nullam tortor phasellus viverra ut arcu. Euismod magnis ante convallis vulputate odio augue sit pretium dapibus.
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A: Eligible assets include new and used equipment, business vehicles (over 6,000 lbs GVWR), off‑the‑shelf software, and select improvements.
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Velit sociosqu purus enim pharetra sed sem at iaculis. Felis ridiculus adipiscing dignissim eros pellentesque mus vitae litora. Felis nullam tortor phasellus viverra ut arcu. Euismod magnis ante convallis vulputate odio augue sit pretium dapibus.
Velit sociosqu purus enim pharetra sed sem at iaculis. Felis ridiculus adipiscing dignissim eros pellentesque mus vitae litora. Felis nullam tortor phasellus viverra ut arcu. Euismod magnis ante convallis vulputate odio augue sit pretium dapibus.
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