This blog post has been updated to reflect the most recent legislative changes in 2025.
Tax season doesn’t have to feel like climbing a mountain. If your business relies on heavy equipment, updated tax rules mean you could write off significant costs this year. Here’s how to stay organized, leverage today’s incentives, and make the most of Section 179 and related benefits under the 2025 legislation.
Table of Contents
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Keep Your Records Updated Year-Round
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Maximize Your Section 179 Deduction
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Use Bonus Depreciation Strategically
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Tap Into Energy-Efficient Equipment Credits
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Choose the Right Depreciation Method
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Monitor Legislative Changes
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Lean on Expert Advice
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Tackle Taxes with Confidence
1. Keep Your Records Updated Year-Round
Don’t leave your accountant scrambling in April. Track every heavy-equipment purchase, lease, repair, maintenance expense, and depreciation entry throughout the year. Digital accounting tools (e.g., QuickBooks, Xero) can automate expense categorization and generate reports your tax preparer will thank you for. When you finance equipment through Equify Financial, your local rep provides the Form 4562 details you need—just hand them over to your CPA.
2. Maximize Your Section 179 Deduction
Under the latest IRS guidance, for tax years beginning in 2025 the Section 179 expense deduction limit is $1,250,000. That full amount is available so long as your total qualifying purchases don’t exceed $3,130,000; any excess reduces your deduction dollar-for-dollar IRSagdirect.com.
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SUV and heavy-vehicle cap: For sport-utility vehicles placed in service in 2025, the deduction limit is $31,300 IRS.
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Used equipment qualifies: Both new and used heavy machinery acquired and placed in service during 2025 are eligible, as long as they’re used more than 50 percent in your trade or business.
3. Use Bonus Depreciation Strategically
The 2017 Tax Cuts and Jobs Act set bonus depreciation at 100 percent through 2022, then phases down by 20 percentage points each year. For property placed in service in 2025, the bonus rate is 40 percent Bipartisan Policy CenterThomson Reuters Tax.
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Combine with Section 179: You can elect both: apply Section 179 up to its limit, then take bonus depreciation on any remaining basis.
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Plan timing: If you expect to exceed the Section 179 threshold, time large equipment purchases across tax years to maximize combined deductions.
4. Tap Into Energy-Efficient Equipment Credits
Beyond immediate expensing, specific credits reward sustainable investments:
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179D Commercial Buildings Deduction: Qualifying energy-efficient systems in commercial buildings placed in service in 2025 can yield a deduction of $0.58–$5.81 per square foot, with the top rate tied to prevailing-wage/apprenticeship compliance The Department of Energy’s Energy.gov.
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30C Alternative Fuel Refueling Property Credit: If you install EV chargers or alternative-fuel dispensing equipment at your business, you qualify for a credit of 6 percent of costs (up to $100,000 per “item”)—or 30 percent if you meet prevailing-wage/apprenticeship rules IRS.
5. Choose the Right Depreciation Method
Evaluate straight-line versus accelerated depreciation under MACRS. While Section 179 and bonus depreciation front-load write-offs, MACRS methods can smooth taxable income over several years—ideal if you expect escalating profits. Your Equify Financial representative can model amortization scenarios when discussing financing options.
6. Monitor Legislative Changes
Tax rules evolve. Recent safe-harbors and new “One Big Beautiful Bill” proposals could further adjust bonus depreciation rules mid-year. Subscribe to IRS releases, reputable tax-advisor updates, or industry seminars so you never miss a curveball.
7. Lean on Expert Advice
When complexity spikes, bring in a CPA or tax attorney experienced in equipment-finance. They’ll review your specific mix of Section 179 elections, bonus depreciation, and industry-specific credits—ensuring you capture every allowable deduction and maintain compliance.
8. Tackle Taxes with Confidence
By staying organized, applying Section 179 and bonus depreciation wisely, tapping energy-efficiency credits, and choosing the right depreciation strategy, you turn a stressful season into a growth opportunity. Implement these steps, and you’ll emerge ready to reinvest savings back into your equipment-focused business.
Ready to expand your fleet? Contact Equify Financial today. Our local reps will guide you through equipment-financing options and equip your tax pro with the documentation needed to maximize your 2025 tax benefits