Head into the new year with new — or new-to-you — construction or forestry equipment or technology, and save on your tax bill.
Section 179 of the federal tax code gives you an option to give less to Uncle Sam, while boosting your equipment fleet and technology. Designed for small- and medium-sized operations, Section 179 allows businesses to deduct the full purchase price of qualifying equipment, machinery, and software in the same year they are placed into service.
Here’s an overview of how Section 179 works:
- Section 179 lets business owners deduct the full cost of qualifying assets, including for new and used machinery and equipment and technology, up to an annual limit.
- For this year, the deductions are capped at $2.5 million and begin to phase out dollar-for-dollar when purchases exceed $4 million. Deductions completely phase out when the expenditure reaches $6.5 million.
- Limits apply to specific property; please consult with your tax advisor to ensure you’re maximizing deductions.
Act now to take advantage of this opportunity. Purchases must be made and the equipment put into operation by Dec. 31, 2025.
Combined with an additional tax law provision — 100% bonus depreciation — now is the time to buy new or used equipment. Contact your McCoy Construction & Forestry or APEX Technologies sales representative for help finding the right equipment and technology for your business needs.
Note: Information provided in this document is for illustrative purposes only. McCoy Construction & Forestry, APEX Technologies, their owners, agents, employees, affiliates, suppliers, and partners are not tax advisors. This document is not intended to offer any tax advice. Please consult with qualified tax professionals concerning your specific situation.
