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Power Pair: Section 179 and Bonus Depreciation

With the recent One Big Beautiful Bill, combining Section 179 expensing and bonus depreciation has never been more powerful. Together, these tax incentives can dramatically reduce your taxable income, allowing you to deduct a significant portion (and in many cases, nearly all) of your equipment purchases made in the year.

What makes this year especially important is timing. Take advantage of both Section 179 and bonus depreciation working at full strength by planning purchases strategically, businesses can stretch every dollar further while modernizing equipment, improving productivity and keeping more cash on hand for growth.

Here’s a look at how these two tools work together and how you can make the most of them before the window narrows:Tax Savings Chart

Impact for You

While the tax incentives are powerful, equipment financing is the tool that makes them accessible. Financing lets you acquire needed assets now without tying up cash flow while still taking full advantage of Section 179 and bonus depreciation.

In effect, you can finance equipment, claim the deductions up front, and generate tax savings that help offset financing costs.

Here are key steps to take:

  1. Review Your Equipment Needs
    Make a list of upcoming purchases or upgrades. Think beyond just the essentials — if it qualifies under Section 179, it could be a strategic investment for your tax strategy.
  2. Time Your Purchases
    If possible, plan equipment purchases to maximize deductions in the current tax year. Remember, the equipment must be in service by year-end to qualify.
  3. Consult a Tax Professional.
    The new One Big Beautiful Bill introduces nuanced changes. A CPA or tax advisor can help you navigate eligibility, phase-out thresholds, and bonus depreciation strategies to ensure you get the most benefit.
  4. Combine with Financing
    If paying for all equipment upfront isn’t feasible, consider financing options. Section 179 still applies, and bonus depreciation may amplify the tax benefit even if you finance the purchase.

Don’t wait until year-end, plan your equipment purchases now to take full advantage of bonus depreciation and Section 179.

Maximize Your Savings

Explore flexible equipment financing options designed to keep cash flow strong while unlocking the biggest tax benefits by completing the form below.