Updated Section 179 Tax Deductions 2025

Everything You Need to Know About 2025 Section 179 Tax Deductions

There have been some important updates to Section 179 for 2025, and here’s what your business needs to know to take advantage of these savings!

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2025 Deduction Limit = $1,250,000

For 2025, the Section 179 deduction limit has increased to $1,250,000 — a boost that gives small and mid-sized businesses even more incentive to invest in the tools they need.

This deduction can be applied to new or used floor grinding and polishing equipment, including CPS Floor Grinders, Dust Extractors, and Vacuums.

2025 Spending Cap on Equipment Purchases = $3,130,000

If your business spends more than $3,130,000 on qualifying equipment in 2025, your Section 179 deduction will be reduced dollar-for-dollar above that amount. This threshold ensures the deduction primarily benefits small businesses.

2025 Bonus Depreciation = 60%

After reaching the Section 179 spending cap, you can still take advantage of 60% bonus depreciation on both new and used equipment. This additional incentive helps reduce your taxable income even further, making 2025 an ideal year to upgrade your equipment and expand your business.

How Section 179 Works

In the past, when a company purchased equipment that qualified for a tax deduction, they had to write it off gradually over several years through depreciation. For example, if your business spent $20,000 on equipment, the tax benefit came in smaller deductions each year over a five-year period.

With Section 179, you can now write off the entire purchase price of qualifying CPS equipment in the same tax year you buy it. This immediate deduction helps small businesses improve cash flow, lower taxable income, and reinvest savings into growth.

Many small businesses will be able to deduct up to $1,250,000 in 2025 — making it one of the most valuable incentives available.

Don’t Leave Money on the Table

Section 179 deductions are a crucial savings opportunity that every eligible business should consider in their year-end financial planning.

Take advantage of these deductions before the end of the tax year and contact CPS for a FREE demonstration or quote. Let us help you invest in your business, save on taxes, and get ready for the 2026 rush!

CPS does not provide legal, tax, or accounting advice. We recommend customers obtain and rely upon such advice from their own accountants, auditors, attorneys, or other professional advisers. For complete details or changes, please visit www.irs.gov or contact the IRS helpline at 800-829-4933.