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SECTION 179 & BONUS DEPRECIATION is BACK & BETTER THAN EVER!

DEDUCT UP TO $2.5 MILLION IN QUALIFYING equipment PURCHASES with section 179. BONUS DEPRECIATION BACK TO 100%

Are you planning your equipment needs for the year ahead? We have great news that could significantly impact your bottom line.

If you are in the market to renew or expand your fleet, one easy way to save is to purchase gear and place it into service before year-end. Recent tax legislation has made equipment purchases more attractive than ever, with two powerful deductions that many business owners don’t realize have been restructured to offer greater savings.

 

HERE’S WHAT HAS CHANGED

 

SECTION 179 HAS DOUBLED

BONUS DEPRECIATION IS BACK TO 100%

  • Deduct up to $2.5 million in qualifying equipment purchases (up from $1.25 million)
  • The phase-out threshold was raised to $4 million in total purchases from $3.05 million
  • Take the full deduction in the year of purchase, not spread over years
  • After dropping to 40% in 2024, bonus depreciation is back to 100% in 2025
  • Deduct the full purchase price of qualifying equipment in year one
  • No limits on purchase amounts
  • Applies to both new and used equipment 
 

HOW DOES THIS COMPARE TO STANDARD DEPRECIATION?

 

Consider a $2.5 million crane purchase (assuming a 35% tax rate). Here’s how these updated incentives make all the difference:

Standard Depreciation

Section 179 + Bonus Depreciation

First years depreciation

$500,000 (20%)

$2,500,000 (100%)

First year savings

$175,000

$875,000

Total purchase price after year one

$2,325,000

$1,650,000

The Bottom Line: Both of these tax advantages save your business $875k, but Section 179 with Bonus Depreciation delivers the full amount in year one, giving you more working capital today.

 

What will you add to your fleet before year end?

The window for maximum tax savings closes December 31st, and quality crane inventory moves fast. Check out our available inventory and request a quote today. 

 
 

FREQUENTLY ASKED QUESTIONS

 

WHAT DOES PLACE INTO SERVICE MEAN?

“Place into service” means the equipment is ready and available in your lot or jobsite for its intended function. If this condition is not met in 2025, the deduction will have to wait until 2026.

WHAT ARE THE Limits of Section 179?

Section 179 does come with limits. There are caps to the total amount written off ($2,500,000) and limits to the total amount of the equipment purchased ($4,000,000). The deduction begins to phase out ratably after $4,000,000 is spent by a given business (thus, the ability to use the deduction goes away after $6,500,000 in purchases are made), so this makes it a true small and medium-sized business deduction.

What could my tax savings look like?

This stuff can be complicated, so check out this handy calculator to calculate your potential savings. Bigge also always recommends consulting with a tax professional to verify actual savings potential. Take advantage of the Section 179 deduction and this last chance at Bonus Depreciation for significant savings.
 

For more information visit: sec​tion179​.org

 

Bigge Crane and Rigging Co. and its affiliates do not provide tax advice. This material has been provided for informational purposes only. You should consult with your tax professional before buying property with the intent to take a Section 179 deduction.