WHAT’S CHANGED FOR 2025?
Section 179 lets businesses immediately deduct the purchase price of qualifying equipment, vehicles, and software in the year they’re placed in service. For construction companies, this means trucks, loaders, excavators, cranes, and more can be written off right away.
The Big Beautiful Bill brings two major changes that make heavy equipment purchases more attractive than ever:
KEY 2025 UPDATES
ONE: 100% BONUS DEPRECIATION RESTORED PERMANENTLY
No more phase-out. Any qualifying equipment placed in service after January 19, 2025, qualifies for full first-year expensing.
TWO: SECTION 179 DEDUCTION DOUBLED
The cap is now $2.5M, with the phase-out beginning at $4M. These limits are permanent and indexed for inflation.
HOW THEY WORK TOGETHER
Apply Section 179 first (up to $2.5M).
Then use 100% bonus depreciation for any remaining amount.
Example: Buy $3M in qualifying equipment → Deduct $2.5M with Section 179 + $500K bonus = full $3M write-off in year one.
WATCH NOW AND HEAR FROM THE EXPERTS ABOUT SECTION 179
FINANCING AND LEASING BOTH QUALIFY
The new rules apply whether you finance or lease (as a capital/finance lease):
FINANCING
Own the equipment after payoff.
Full first-year deduction + interest deduction.
Higher payments, but long-term asset ownership.
LEASING (CAPITAL LEASE):
Lower monthly payments, preserves cash flow.
Still eligible for full Section 179 + bonus deduction.
Option to purchase or return equipment at end of term.
WHAT THIS MEANS FOR YOU?
With Section 179 limits doubled and 100% bonus depreciation permanent, 2025 is the most tax-efficient year yet to finance or lease new heavy equipment. That means stronger cash flow, lower effective costs, and more flexibility for your construction business.
