Unlock Big Tax Savings in 2025 with Section 179
- maggieh90
- Aug 21
- 2 min read
What’s in the 2025 Tax Law for Machine Tool Buyers?
Generous Deduction Limits
You can now write off up to $2.5 million in equipment purchases in the same
tax year they’re placed into service—up from previous limits of $1.25 million.
Expanded Phase-Out Threshold
The deduction begins to phase out only after $4 million in purchases, with total
ineligibility starting at $6.5 million.
Stacked with 100% Bonus Depreciation
The revamped “One Big Beautiful Bill” allows for full bonus depreciation on
qualifying assets in 2025. This means nearly full deduction of equipment costs in
year one.
R&D Expenses Overhaul
Manufacturers can now immediately expense R&D costs within the same year, rather than amortizing over five years. Previously manufacturers have overlooked expensing their R&D costs. Now that these costs are 100% deductible within the year they are incurred, R&D tax benefits are too good to pass up.
Deadline: December 31, 2025
To qualify, equipment must be purchased, installed, and in service before year-
end.
Why Act Now? The Multiplier Benefits for Machine Tool Buyers
1. Maximize Immediate Cash Flow
These deductions drastically reduce taxable income—and reinforce your working
capital. Your investment becomes significantly less expensive after saving taxes.
2. Avoid Tariffs & Shipping Delays
With global supply chain disruptions and new machine imports often delayed,
buying in-stock machines ensures timely year-end delivery—so you lock in both
performance benefits and tax incentives.
3. Stay One Step Ahead of Competitors
Next year’s deduction limits are expected to be less generous. Investing in 2025
gives you both a tax and operational advantage.
4. Used Equipment Still Qualifies
Section 179 and bonus depreciation apply to new and used machines, as long as
they’re “new to your business” —great news for those hunting for smart deals.
Bottom Line: This Is Your Year to Invest
If you’re considering expanding capacity or upgrading your machine floor, now is the
smart move. Secure an in-stock machine today to:
Lock in tax benefits
Avoid future delays or tariff hikes
Start seeing ROI sooner than expected
Thanks to our friend and partner Contend Capital for helping summarize some of the 179 news and information for our readers. For all of your machine tool capital needs Contend should be your first stop! Learn more and visit them here.