The recently passed tax credits brings several impactful tax changes that may benefit your business. Here’s a quick summary of what you should know:
Section 179: Expanded Deduction Limits
- Deduction limit increased to $2.5 million for equipment placed in service after December 31, 2024.
Bottom line for 2025: You can deduct up to $2.5M in qualified equipment purchases, significantly higher than the $1.22M limit in 2024.
Lower Interest Rates Increases Equipment Sales
Lower interest rates mean buying equipment with financing costs less, which makes it more attractive for businesses to invest in growth and modernization.
R&D and Manufacturing Support
- Domestic R&D expenses can now be fully expensed—no more multi-year amortization.
- Manufacturing assets placed in service through 2032 qualify for full bonus depreciation.
Did you know that: Real Examples
- A food packaging company installed smart conveyor systems qualified for Section 179 + utility rebate
- A MedTech firm prototyped a new surgical device received 12% back in R&D tax credits
- A contractor upgraded servers for CAD renderings qualified for local innovation incentives
Equipment Financing Improves Cash Flow
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