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Section 179

See below for a quick summary of Section 179, the updates from recently approved bills and links to both used and new equipment that can be delivered in time to take advantage of these incentives.  As always, please contact your Gladwin Sales Rep as these lists and available products change.

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Section 179 

Here’s How Section 179 works:

In years past, when your business bought qualifying equipment, it typically wrote it off a little at a time through depreciation. In other words, if your company spends $50,000 on a machine, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example). Now, while it is true that this is better than no write-off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it. 

And that’s exactly what Section 179 does – it allows your business to write off the entire purchase price of qualifying equipment for the current tax year. This has made a big difference for many companies (and the economy in general.) Businesses have used Section 179 to purchase needed equipment right now, instead of waiting. For most small businesses, the entire cost of qualifying equipment can be written-off on your tax return (up to $1,080,000).

Section 179 Updates

The new act, effective from January 19, 2025, significantly enhances tax incentives, empowering manufacturers by reinstating full bonus depreciation, raising Section 179 expensing limits, and simplifying R&D deductions

  • New Section 179 limit increased significantly to $2.5 million (up from $1.22 million in 2024).
  • Phase-out threshold now starts at $4 million, providing ample headroom for growing manufacturers.
  • Covers the Entire Package – Freight, installation, automation, and tooling all qualify.
  • Flexible Election – Claim Section 179 or defer it; your controller keeps full control of the timing.

Common Questions About the new Act for Manufacturers

Can Section 179 and Bonus Depreciation be combined?
Yes, apply Section 179 first and then bonus depreciation to maximize deductions.

Does used equipment qualify?
Yes, as long as it's "new to your business."

Are these changes permanent?

The current provisions are permanent, but always verify with your tax advisor.

Section 179.0rg

The above information and further details on Section 179 can be also found at www.section179.org. Reference: Section179.org.  Tax information should always be confirmed with your accountant.