Maximize Your Returns with Two Key Tax Benefits

Under Section 179 of the U.S. tax code, a taxpayer may elect to expense some or all of the cost of qualifying equipment. Section 179 provides the allowable deduction limit of $2,500,000 on the cost of new and used capital equipment purchased with an investment cap of $4,000,000.

Bonus depreciation allows a taxpayer to deduct a fixed percentage of the cost of qualifying purchases. Bonus depreciation can now be combined with Section 179 and reinstates 100% depreciation for assets acquired after January 19, 2025. Enabling you to take additional depreciation on new and used (new to you) capital equipment purchases.

Tax Savings Introduced by Bonus Depreciation and Section 179 under the Big Beautiful Bill (BBB)

The purpose of this tax benefit is to stimulate the economy. The money you save in the short term can be reinvested in capital improvements, expansion projects and more, so don’t wait – buy that new or used equipment today!

What qualifies for the Section 179 deduction?

New, used and financed equipment that is purchased and placed into service before December 31, 2025.

What is the maximum deduction I can take under Section 179?

$2,500,000. Plus, get 100% depreciation on the remaining cost of eligible assets.

Is there a limit on the total amount of equipment I can purchase to qualify for the Section 179 deduction?

Yes, the investment cap phases out on a dollar-for-dollar basis when your total equipment purchases exceed $4,000,000.
Contact Us Today to Learn More About Section 179

*This information on Section 179 and the bonus depreciation is provided from a customer perspective by Butler Machinery and should not be considered tax advice. For detailed guidance on how Section 179 and the bonus depreciation apply to your specific tax situation, please consult with a qualified tax advisor.