An election to deduct qualifying equipment purchases immediately instead of depreciating them.
Small businesses can expense up to $1.25M (2025) of equipment in year one, subject to income limits. Bonus depreciation stacks on top for amounts beyond the cap.
Example: Expensing a $150,000 machine at a 30% rate saves $45,000 in year-one tax.
FAQ
What is Section 179 in simple terms?
Small businesses can expense up to $1.25M (2025) of equipment in year one, subject to income limits. Bonus depreciation stacks on top for amounts beyond the cap.