If you’re thinking about buying new equipment this year, there’s some good news: the Section 179 tax deduction just got an upgrade for 2025. That means you can write off more of your equipment investment — right away — and keep more cash in your business.
Don’t Miss the Write-Off: 2025 Brings Bigger 179 Benefits
We know most contractors don’t have time to read IRS memos, so here’s the short version: Section 179 lets you deduct the full purchase price of qualifying equipment (like a new water truck or lube unit) in the same year you put it to work.
And in 2025? The limits are bigger than ever.
What’s New with Section 179 in 2025?
Here’s what just changed:
- Deduction Limit Increased to $1.29 Million: That’s up from $1.16 million last year — meaning you can deduct more upfront.
- Equipment Purchase Cap Raised to $3.22 Million: This is the total equipment spend you can make before the deduction starts to phase out.
- Bonus Depreciation Still Available at 60%: After you hit the Section 179 limit, you can still take 60% bonus depreciation on the rest — great for bigger fleet purchases.
These updates make 2025 a prime time to invest in the iron you’ve been eyeing.
What Kind of Equipment Qualifies?
To take advantage of Section 179, the equipment must:
- Be used for business more than 50% of the time
- Be new-to-you (both new and used qualify)
- Be purchased and put into service before December 31, 2025
At Niece Equipment, most of our machines qualify — including our water trucks eligible for deduction, fuel and lube trucks, and qualifying equipment parts and kits.
Why It Matters: Real Savings, Real Fast
Let’s say you buy a $250,000 water truck this fall. If you meet the qualifications, you could deduct the full $250,000 on this year’s taxes. Depending on your tax bracket, that’s a serious chunk of change back in your pocket — cash you can use to buy more equipment, cover operating costs, or grow your business.
And if you’re financing? You still get the full deduction — even though you haven’t paid off the machine yet.
Make Your Move Before the Deadline
To claim the 2025 deduction, your equipment needs to be purchased and put into service by December 31. That means now’s the time to start planning.
If you’ve had your eye on upgrading your fleet or adding new units, don’t wait until the year-end rush. Let’s talk now and get you squared away before inventory gets tight.
Key Takeaways:
- Section 179 deduction limit is now $1.29M for 2025
- Applies to new and used equipment (must be business-use and in service by year-end)
- Niece Equipment offers qualifying trucks and kits — from water trucks to fuel/lube units
- Financing? You can still claim the full deduction
- Deadline: December 31, 2025
