Section 179 Tax Deduction for Equipment Purchases

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 Eligible - text graphic

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.

Read more…

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.

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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

Read more…

Equipment Financing Improves Cash Flow

EST 1992, a company you can trust.

Automation Starts Here – Financing Makes It Possible

Industry Overview

The U.S. food and beverage production sector is undergoing a significant transformation driven by shifting consumer demands, technological advancements, and evolving supply chain strategies. From automation and smart manufacturing to sustainability initiatives and regulatory changes, these trends are shaping how companies innovate and compete in 2025 and beyond.

Fresh strawberries packaging automation.<br />
Lease food processing and packaging equipment - SCL Equipment Leasing

The Food and Beverage Production

…sector in the US is a significant contributor to the economy, accounting for nearly 3.5 million jobs and over $534.3 billion of GDP in 2023. This sector includes Agriculture, Fishing, and Food and Beverage Processing subsectors, with notable job growth in food manufacturing, particularly beverage production.

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Pack Expo Vegas 2025

With Pack Expo approaching featuring over 2,300 exhibitors and 35,000 attendees equipment and automation will be top of mind for many companies. As businesses look to modernize and streamline operations, financing will play a critical role in making these investments possible. Offering financing options can be a powerful way to drive more sales and help your customers take action now rather than later.

PMMI Business Intelligence Report

Beverage Packaging Industry Responds to Rapid Transformation

Research shows 68% of companies plan significant equipment upgrades ahead of Pack Expo Las Vegas 2025.

2025 Beverage Industry Packaging Trends

At SCL Equipment Finance, we believe strong partnerships drive success. By working together, we can help your customers secure the equipment they want without financial roadblocks. Our flexible financing programs are designed to support your sales goals, strengthen customer relationships, and deliver a seamless buying experience.

Barbara Griffith, President & Founder
Monitors Top 50 Women in Equipment Financing
714-573-9804 x 101
bgriffith@sclfinance.com

Business Tax Change 2025

The recently passed One Big Beautiful Bill Act (OBBB) 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.

Read more…

Continued Pass-Through Deduction

  • The 20% pass-through deduction for qualified business income is now permanent.
  • Helps sole proprietors, S corps, and partnerships keep more of their earnings.

Read more…

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.

Read more…

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

Banking Relationship Paradox: Why 72% of Small Businesses Get Better Terms from Non-Bank Lenders

The Changing Lending Landscape

A comprehensive study tracked over 2,000 businesses with annual revenues between $500,000 and $10 million that sought financing in the past 18 months. While traditional banks might offer equipment financing, a closer look at the cost of capital reveals non-bank lenders are very competitive, with better services.

  • Speed to funding: Non-bank lenders averaged 7 days from application to funding, compared to 32 days for traditional banks
  • Approval rates: 67% for qualified applicants at non-bank lenders versus 41% at traditional banks
  • Documentation requirements: 78% fewer documents required by leading non-bank lenders
  • Flexible structures: 84% of non-bank lenders offered custom repayment schedules versus 23% of traditional banks

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Personal Guarantee Explained: Protecting Your Credit While Building Business Credit

When setting up your equipment finance program, most companies will sign a personal guarantee. This is standard in most small business financing and simply means you are backing the agreement personally in case the business cannot fulfill the obligation.

However, this financing will not report to your personal credit and does not impact your personal credit score—unless there is a serious default. It remains separate from your personal credit file.

The real benefit is that it will help your company build its own business credit profile, which can open the door to larger financing opportunities in the future without needing a guarantor.

FREE Check your personal credit

Your business deserves the strongest financial foundation.

Understanding Your Business Credit & Tips to Improve

Know Your Business Credit: Where to Look and What to Know, and Personal Credit for Growth!

Are you a CEO or business owner looking to secure better rates, expand your business, and strengthen your financial foundation? Understanding what creditors see on reports from agencies like PayNet, D&B, and personal credit bureaus is important to your companies success.

Watch this complimentary 20-minute Zoom session where Barbara Griffith will break down the fundamentals of business and personal credit.

  • Learn how business credit impacts funding & growth
  • Understand what lenders look for in your reports
  • Get tips to improve your credit and secure the best terms

Vendors can offer a subsidy to lower the cost of financing

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Vendors can offer a subsidy, allowing customers to purchase equipment at a reduced finance rate.

Why is offering a subsidy effective?

  • It enhances cash flow for both the customer and the vendor.
  • A financial subsidy can set a vendor apart from competitors.
  • It fosters customer loyalty

Projects, pen on report

Section 179 Allows a Business to Expense their Equipment Purchase

As of 2024, the Section 179 deduction limit is $1,160,000. This means that businesses can deduct the full cost of qualifying equipment and software purchased or financed during the tax year.

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No Payments 3-6 Months

The decision to upgrade or purchase new equipment is critical to the success of your company’s growth. Businesses can reach a point where they have reached a stalemate and must invest in their operations for you to expand and become more profitable in the future. We have a new program ” No Payments 3-6 Months” call to discuss.

Would you like a free copy of your Dun & Bradstreet report?

Just send me an email bgriffith@sclfinance.com