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How Section 179 Saves You Thousands on Equipment

Maximize Your Tax Savings with Section 179

If you’re looking to upgrade your fleet, expand your attachments, or invest in new equipment that’ll move your business forward, now’s the time. Section 179 allows eligible businesses to deduct up to $2,500,000 of qualifying equipment purchased and placed into service in 2025, with the deduction phasing out dollar-for-dollar after $4,000,000 in equipment purchases.

At Rexco Equipment, we serve contractors, farmers, rental fleets and municipalities, and we know how time-sensitive year-end equipment planning can be. Leveraging Section 179 correctly can dramatically reduce your tax bill while upgrading your operation.

Understanding What Section 179 Actually Does

Section 179 is a federal tax incentive that lets you deduct the full purchase price of qualifying business property in the year it’s placed into service, rather than depreciating it over several years. For 2025:

• Maximum deduction: $2,500,000.

• Phase-out begins when you place over $4,000,000 of qualifying property into service in the tax year.

• Property must be bought (or financed), placed into service, and used for business more than 50 % of the time.

What qualifies in the equipment world:

• New or used compact equipment (loaders, excavators, track loaders)

• Attachments (augers, grapples, brush cutters)

• Service trucks, trailers, and business vehicles (subject to additional rules)

• Shop and service equipment

Expert Tip:

The equipment must be placed into service this tax year (2025) to claim the deduction now, not simply purchased or ordered.

Why Section 179 Is a Smart Move for Equipment Buyers

Let’s say you purchase a $150,000 loader or skid steer and get it into service in 2025. If you fall into an approximately 30% tax bracket, the Section 179 deduction could reduce your taxes by around $45,000. That means more cash stays in your business for funding attachments, labor, or your next upgrade.

The benefits:

• Immediate tax savings vs. waiting years via standard depreciation

• Improved cash flow for your business

• Greater flexibility: purchase now, use now, and save now

• Strategic growth: Upgrading now means you’re ready for more jobs next season

Yes, Financing Still Qualifies for Section 179

Here’s one of the biggest misconceptions: You don’t have to pay the full cost upfront to get the deduction. If you finance qualifying equipment and the equipment is placed into service in 2025, you may still claim the deduction in that tax year.

This lets you:

• Acquire the machine now

• Begin operating it immediately

• Still benefit from the deduction even while paying over time

At Rexco Equipment, we can work with you on financing options that align with year-end tax strategy.

Don’t Wait — Year-End Deadlines Come Fast

Section 179 only works if:

• Your equipment is acquired and placed into service by December 31, 2025

• It is used for business (>50%)

• Your purchase ties directly to your business operation

Inventory for compact equipment, attachments, and specialized units often tightens in Q4. If you delay, you risk:

• Delivery or commissioning delays

• Missing the “placed in service” deadline

• Reduced availability or higher prices

Recommendation:

Lock in your equipment order now, schedule delivery and commissioning, and document in-service dates. Don’t leave tax savings to chance.

Get the Most from Section 179 with Rexco Equipment

If you’re a contractor, rental fleet operator, or ag-business owner looking at machines, attachments, or vehicles, now is the time. Here’s how to make it count:

• [Browse Rexco’s Inventory] of machines, trailers, and attachments.

• Engage with our sales team about delivery and commissioning schedules this calendar year.

• Ask about financing terms and how they align with Section 179 eligibility.

• Coordinate with your tax advisor to map the deduction and bonus depreciation strategy.

• Document purchase date, delivery date, commissioning (placed in service) date, and business use percentage.

Check out our Section 179 page to [Calculate Your Savings]. If you're ready to start expanding your fleet, [Contact Rexco Equipment] today!

Rexco Equipment is not giving tax advice. You must consult your tax professional to confirm your eligibility and to structure your purchase appropriately.