If your business is planning to purchase equipment or commercial vehicles this year, you have a powerful opportunity to reduce your tax burden and improve cash flow thanks to recent updates to the Section 179 tax deduction.
For years, this small-business-friendly incentive has helped companies invest in essential equipment while saving money at tax time. But now, thanks to changes introduced in the recently passed “One, Big, Beautiful Bill,” those savings have gotten even bigger.
At Team Financial Group, we’re here to help you understand what these updates mean for your business, how to take full advantage of them, and why it might make sense to move quickly if you’re planning a purchase this year.
What Is Section 179?
Section 179 is part of the IRS tax code that allows businesses to deduct the full purchase price of qualifying equipment, vehicles, and software in the same year they are put into service.
That’s a big deal.
Normally, the IRS requires you to depreciate large equipment purchases over several years and spread out the tax benefit. But with Section 179, you can deduct the full amount upfront, lowering your taxable income immediately.
In short, the Section 179 deduction:
- Reduces your current-year tax bill
- Improves cash flow
- Encourages strategic growth
No tax loopholes. No gimmicks. It’s a legitimate, IRS-sanctioned way to make investing in your business more affordable.
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Updates to Section 179 from the Big Beautiful Bill
In 2025, lawmakers passed the “One, Big, Beautiful Bill,” a sweeping package designed to stimulate small business investment. Updates to Section 179 were one of the key features included.
Here’s what’s new:
Deduction Limit Increased to $2.5 Million
Under the new rules, businesses can now deduct up to $2.5 million in qualifying equipment purchases per year. That’s a major boost from the previous limit, giving mid-sized and growing companies more room to invest—and save.
Phase-Out Threshold Raised to $4 Million
Section 179 used to start phasing out when total equipment purchases reached $2.7 million. That threshold has now increased to $4 million, meaning more businesses will qualify for the full deduction.
Expanded Coverage
In addition to traditional equipment and vehicles, the revised Section 179 now covers a broader range of improvements including:
- HVAC systems
- Roofing
- Fire protection and alarm systems
- Security systems
- Office upgrades and qualified property improvements
If you’ve been putting off building improvements due to cost, this expansion gives your company a new incentive to move forward.
Still Combines with 100% Bonus Depreciation
One of the best features of Section 179 is that you can combine it with bonus depreciation. If your equipment or property investment exceeds the deduction limit, bonus depreciation lets you deduct 100% of the remaining value in the same year.
This combination means that in many cases, you can write off the entire cost of your purchase even if it’s above $2.5 million.
Who Benefits from Section 179 Updates?
These changes are especially valuable for businesses that:
- Are growing rapidly and need to invest in equipment or vehicles
- Need to replace aging or inefficient machinery
- Want to upgrade office or facility infrastructure
- Operate in capital-intensive industries like construction, logistics, agriculture, or manufacturing
Whether you’re buying one vehicle or upgrading your entire facility, these changes are designed to make your investments more affordable in the short term without sacrificing long-term stability.
What Does Section 179 Look Like in Practice?
Here’s a quick example to show how these changes might impact your business.
Let’s say you finance $200,000 worth of equipment this year. Under Section 179, you may be able to deduct the full $200,000 from your taxable income, even though you’re making monthly payments over time.
That could translate to $40,000 or more in tax savings, depending on your tax bracket.
And remember: you don’t need to pay cash up front to claim the deduction. Financed equipment still qualifies as long as it’s placed into service before December 31 of the tax year.
Why Now Might Be the Right Time to Buy
With these generous new limits and the potential for significant savings, now is an ideal time to invest in the equipment your business needs.
But there are two things to keep in mind:
1. You Must Put the Equipment into Service This Year
Section 179 applies only to equipment and vehicles that are purchased and placed into service before the end of the calendar year. That means waiting until late December might be too late.
2. Inventory and Lead Times Are Still a Factor
Even in a post-pandemic economy, many industries are still facing long lead times for certain vehicles or machines. If you’re considering a major purchase, start planning now to ensure everything is up and running before year-end.
How Team Financial Group Can Help
At Team Financial Group, we specialize in helping businesses finance equipment and vehicles in a way that maximizes their savings and supports growth.
Here’s how we help you take full advantage of Section 179:
Fast, Flexible Financing
We understand that when you’re ready to act, you need answers quickly. Our streamlined application process often leads to same-day approvals. We offer flexible payment structures to match your cash flow.
100% Financing Available
With $0 down options, you can finance the full cost of equipment, improve your cash position, and still claim the full deduction.
Section 179 Guidance
We’ve worked with many businesses to plan their purchases around Section 179 eligibility. We’re happy to collaborate with your CPA or tax advisor to ensure your financing strategy aligns with your tax planning goals.
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Ready to Invest in Equipment and Save?
Section 179 updates give business owners a unique opportunity to invest in vehicles, machinery, and property improvements while keeping more money in their business.
If you’re thinking about purchasing new equipment this year, Team Financial Group is ready to help you move quickly, finance wisely, and maximize your tax savings.
Contact us today or call 616-735-2393 to speak with a financing expert who understands your business and your goals.