Section 179 allows a first-year write-off of qualifying equipment and software placed in service during the tax year.
Section 179 of the IRS code lets businesses deduct the full purchase price of qualifying equipment and/or software bought or financed during the tax year—rather than depreciating it over several years.
Businesses that purchase, finance, or lease under $6,500,000 in qualifying new or used equipment in 2025—and place it into service between January 1 and December 31, 2025—generally qualify.
Instead of depreciating a $50,000 purchase over five years (e.g., $10,000 per year), Section 179 allows you to deduct the entire $50,000 in the year it’s placed in service.
Yes. The 2025 maximum deduction is $2,500,000. The deduction phases out dollar-for-dollar after total equipment purchases exceed $4,000,000.
