Get the Most From Your 2025 Section 179 Tax Benefits

Get the Most From Your 2025 Section 179 Tax Benefits

Construction crew with various pieces of Kubota equipment on a construction site.

Now is the time for business owners to review equipment purchases and make the most of Section 179 — one of the most valuable tax incentives available for capital investment. Thanks to updates under the One Big Beautiful Bill Act (OBBBA), 2025 brings some of the most generous limits yet, making it an ideal year to upgrade or expand your equipment fleet.

Bigger Deduction Limits for 2025

This year, the Section 179 deduction limit jumps to $2.5 million, nearly doubling last year’s cap. The phase-out threshold has also increased to $4 million, allowing many businesses to expense even more equipment. And with 100% bonus depreciation restored for new and used equipment placed into service after January 19, 2025, even large purchases may qualify for a full write-off.

Already Bought Equipment? You May Qualify

If you purchased equipment this year — including Kubota machines — talk to your CPA about whether it qualifies for Section 179 or bonus depreciation. Financed equipment is typically eligible, meaning you can often deduct the full amount even if you’re still making payments.

Don’t Wait Until the Last Minute

To claim Section 179 for the 2025 tax year, equipment must be acquired and placed into service by December 31. That means delivered, set up, and ready for business use. Items that are purchased but not yet in service generally don’t qualify until the following year, so avoid waiting until the final weeks of December.

What to Bring to Your Tax Appointment

Make sure you have documentation showing:

  • Purchase date
  • Date placed into service
  • Related costs (delivery, installation, setup)
  • Business-use percentage for any mixed-use items

Boost Savings with Kubota’s Year-End Offers

For those still considering equipment purchases, Kubota’s seasonal financing and rebate programs offer additional opportunities to save. Combined with Section 179 benefits, these incentives can significantly reduce your overall cost. Talk to the Steen team to to take advantage of these year-end savings before time runs out!

Always consult a qualified tax professional to understand how Section 179 applies to your specific situation.