When businesses invest in new equipment, the cost can be a major hurdle. Section 179 of the U.S. tax code helps by allowing companies to deduct the full purchase price of qualifying equipment in the same year it’s placed into service. This can reduce tax liability and free up cash for other priorities.
Instead of spreading depreciation over several years, Section 179 lets you take a full, upfront deduction for eligible purchases (up to the annual IRS limit). Key points:
Equipment must be purchased and placed into service within the tax year.
Both new and used equipment may qualify.
Financed or leased equipment often qualifies as well.
Bonus depreciation may apply once Section 179 limits are reached.
Many types of tangible business-use equipment qualify, including:
Machinery and industrial tools
Computers, software, and office equipment
Business-use vehicles
Manufacturing and processing equipment
Certain building improvements like HVAC or security systems
If it’s essential to business operations, it likely qualifies — but always confirm with a tax professional.
Purchase before year-end — The equipment must be both bought and placed into service within the tax year.
Consider financing — You may deduct the full amount even if you finance the purchase.
Save documentation — Keep invoices, service-start dates, and any financing agreements.
Consult a tax advisor — They can help confirm eligibility and maximize your deduction.
If you plan to upgrade or replace equipment, Aramsco offers a wide range of qualifying products along with financing options that may allow you to deduct the full purchase price even as you pay over time. By combining Section 179 with Aramsco’s equipment selection and support, businesses can reduce their net investment cost and put essential tools into service before year-end.