
As a business owner, every dollar counts. You want to invest in the equipment, machinery, and software that drives growth, but you also want to manage your tax liability effectively. That’s where Section 179 of the IRS tax code comes in. It’s a powerful incentive that can transform capital expenses into immediate, significant tax deductions.
Here is a breakdown of this essential tax provision and how your business can use it to its full advantage.
What Exactly is Section 179?
Section 179 allows businesses to deduct the full purchase price of qualifying equipment in the year the asset is placed into service, up to a generous limit. This means you get your tax savings now, providing an immediate boost to your cash flow, rather than waiting years for smaller write-offs.
How Section 179 Works For Your Business
Think of Section 179 as a green light for immediate expensing.
- The Incentive: It’s designed to encourage small and medium-sized businesses to invest in themselves. By accelerating the tax benefit, the net cost of essential equipment and software drops significantly, making those purchases more affordable.
- The Key Requirement: The equipment must be purchased or financed AND actively used in your business between January 1st and December 31st of the tax year you are claiming the deduction.
What Business Purchases Qualify for Section 179?
All businesses that purchase, finance, and/or lease new or used business equipment and/or software during tax year 2025 should qualify for the Section 179 deduction.
How Can Emerald Document Imaging Assist?
Emerald Document Imaging is your preferred vendor for office equipment and software solutions. We would be happy to assess your year end technology and equipment
initiatives and review how the savings from the Section 179 deduction can positively impact your bottom line.
Reach out now and we’ll help guide you through the process →
