How Section 179 Helps You Reduce Taxes and Save More

Section 179 is a valuable tax tool that lets businesses deduct the full cost of qualifying assets in the year they are purchased and placed into service. Beginning in 2025, the deduction limit has been increased to $2.5 million, with a phase-out starting once purchases exceed $4 million. This change gives small and mid-sized businesses even more flexibility to immediately recover the cost of vehicles, equipment, and other eligible property.

On top of that, bonus depreciation has been restored to 100% and made permanent, allowing businesses to deduct the entire cost of most new and used property without a dollar limit.

This guide explains how Section 179 and bonus depreciation work, what assets qualify, and how to use both provisions together to maximize tax savings and improve cash flow.