Tools That Make Your Business Work™

Your Guide to Year-End Tax Benefits on 2025 Heavy-Equipment Purchases

If you’re a small or mid-size U.S. business, year-end can be the smartest time to add machines. Qualifying new or used (new-to-you) equipment placed in service this year may qualify for Section 179 expensing and bonus depreciation, putting real money back into your operation.

Section 179 (2025 overview)

  • Max deduction: $2.5 million

  • Phase-out begins: $4.0 million in total purchases; fully phased out at $6.5 million

  • Eligible: New and used equipment (must be new to you) and used >50% for business

  • Note: Section 179 can’t create a net loss; unused amounts may carry forward

  • Tip: Limits can adjust—always check current IRS guidance

Section 168(k) Bonus Depreciation (2025 overview)

  • Rate: 100% bonus depreciation reinstated for qualifying assets acquired and placed in service after Jan 19, 2025

  • Transition window: Assets placed in service Jan 1–Jan 19, 2025 generally qualify at 40%

  • No dollar cap: Can apply after Section 179—great for buyers exceeding the 179 limit

Example: stacking Section 179 + Bonus Depreciation

Assume: $3,000,000 of qualifying equipment, placed in service in 2025

  • Section 179 deduction: $2,500,000

  • Remaining depreciable basis: $500,000

  • 100% Bonus depreciation: $500,000

  • Total first-year deduction: $3,000,000

  • If taxed at 21% C-corp rate → approx. $630,000 in year-one federal tax savings
    (Actual results vary by entity, state taxes, acquisition dates, and eligibility.)

Timing & action steps

  • Placed-in-service by Dec 31, 2025 to count for 2025 (confirm exact rules with your advisor)

  • For 100% bonus, confirm assets are acquired and placed in service after Jan 19, 2025

  • Prioritize units that lower $/hour immediately (fuel burn, cycle time, uptime)

  • We’ll help you compare cash, finance, or lease and show total cost of ownership (with and without tax benefits)

Talk with Nuss

Looking at excavators, haulers, loaders, or attachments? Nuss Truck & Equipment can quote availability, structure financing, and coordinate delivery so you can place assets in service before year-end.

Disclaimer

Tax incentives are complex and fact-specific. This article is general information, not tax or legal advice. Rules change and state treatment varies. Consult your tax advisor about eligibility for Section 179 and bonus depreciation.