Section 179 Deduction Limit Doubles to $2.5 Million!
BIG Tax Deduction for BIG Machines
Select Machining Technologies is excited to share that Section 179 Tax Incentives have been dramatically increased, which is good news for manufacturers seeking advanced manufacturing technology for large, heavy, oversized parts. Here's how it could work for you...
New for 2025
Starting January 19, 2025, there are new, bigger limits:
- You can deduct up to $2.5 million on equipment purchased and placed in service in 2025.
- Once your equipment spending hits $4 million, the deduction slowly decreases until it goes away completely.
- On top of Section 179, you can also claim 100% bonus depreciation on any equipment costs not fully deducted by Section 179.
100% Bonus Depreciation
The Big Beautiful Bill Act also allows 100% “Bonus Depreciation”, once Section 179 deduction limit is reached. This 100% “Bonus Depreciation” can be taken on new or used equipment.
What is Bonus Depreciation?
Bonus depreciation is another tax tool that lets you deduct equipment costs quickly. After you apply Section 179, you can use bonus depreciation on any remaining cost. In 2025, bonus depreciation is 100%. That means you can immediately write off the entire leftover cost instead of spreading deductions over several years.
Example of Possible Tax Savings
Example of Tax Savings on a Larch Capacity CNC Mill or Lathe
Here's how it might look if you bought a $800,000 machining center:
- Machine Cost: $800,000
- Section 179 Savings: At a 32% tax rate, you save $256,000
This shows how powerful Section 179 can be—especially if the machine is in-stock and available to be installed by year-end. Not only do you benefit from tax savings, you've increased your capabilities and capacity to go after more work immediately, giving your business a competitive advantage.
To Qualify for Section 179 Tax Savings, Equipment Must Be Placed in Service by Year-End!
SELECT Machining Technologies has one large-capacity machines in stock, loaded with features and available for year-end delivery to qualify for Section 179 tax savings. Act now before it's gone!
SORALUCE TA35
5-axis Multitasking Machining Center
In-Stock in Waukesha, WI