December 2025
When you’re running a farm, a landscaping business, or any equipment-driven operation, major purchases are rarely impulsive. Equipment upgrades are usually planned, budgeted, and timed carefully.
But as the year comes to a close, there’s one financial factor that often turns a “next year” purchase into a “right now” decision: the Section 179 tax deduction.
If you’ve had a strong year and are considering upgrading or expanding your equipment fleet, understanding how Section 179 works could make a meaningful difference to your bottom line.

What Is the Section 179 Deduction?

Section 179 is a U.S. tax provision that allows eligible businesses to deduct the cost of qualifying equipment in the same year it is purchased and placed into service, rather than depreciating it gradually over several years.
For many small and medium-sized businesses, this can mean:
  • Lower taxable income for the current tax year
  • Improved cash flow by keeping more money in the business
  • The ability to reinvest sooner rather than later
Instead of waiting years to recover the cost of essential equipment, Section 179 allows businesses to see tax benefits immediately.

Section 179 at a Glance (2025)

  • Applies to qualifying new and used business equipment
  • Equipment must be used more than 50% for business purposes
  • Deduction is taken in the year the equipment is placed into service
  • Deadline: December 31, 2025
  • Always confirm eligibility with your tax advisor

Why Year-End Equipment Purchases Matter

Timing is critical with Section 179. To qualify for the deduction in the 2025 tax year, equipment must be:
  • Purchased or financed, and
  • Placed into service before December 31, 2025
Important note on timing: simply placing an order is not enough. Ordering earlier helps reduce the risk of year-end shipping delays and gives you more flexibility to put equipment into use before the deadline.
For businesses coming off a profitable year, a year-end purchase can help convert taxable income into productive assets that support next year’s operations.

2025 Section 179 Limits (At a Glance)

Section 179 limits are adjusted periodically by the IRS for inflation. For the 2025 tax year, the general framework is expected to allow:
  • Estimated deduction limit: up to $1.2M+, subject to final IRS inflation adjustments
  • Phase-out threshold: begins once total qualifying equipment purchases exceed $3.0M+
If purchases exceed the full deduction limit, bonus depreciation may apply to a portion of the remaining amount. Bonus depreciation percentages are scheduled to continue phasing down in coming years, which may make year-end deductions more valuable now than later.
Because tax rules can change, it’s important to confirm current limits with a qualified tax professional.

What Types of Equipment Typically Qualify?

Section 179 generally applies to tangible, business-use equipment. At Farmry, many of our most popular products fall into qualifying categories, including:
  • Farm machinery: flail mowers, rotary tillers, hay equipment
  • Construction attachments: backhoes, stump grinders, trenchers
  • Seasonal machinery: snow blowers and spreaders — ready when the next storm hits
Both new and used equipment may qualify, as long as it is new to your business and used primarily for commercial purposes.

Why Many Businesses Choose to Upgrade Before Year-End

For equipment-driven businesses, upgrades are rarely optional forever — they’re usually inevitable.
Taking advantage of Section 179 before year-end can allow you to:
  • Replace aging equipment before spring workloads begin
  • Lock in current pricing ahead of potential January increases
  • Convert taxable income into productive, revenue-generating assets
  • Start the new year with equipment ready to work, not waiting to be ordered
If you’re already planning an upgrade in early 2026, moving that decision forward may help you capture tax benefits that won’t carry over.

Ready to Make Your Move?

If you have remaining equipment budget for 2025, now is the time to act.
At Farmry, we have high-demand units in stock and ready to ship, including:
👉 Shop Backhoe Attachments — maximize your investment with heavy-duty digging power
👉 Shop Snow Blowers — prepare for late-season and early-January storms
Don’t let the calendar decide for you. The December 31 deadline comes quickly.

Disclaimer

This content is provided for general informational purposes only and should not be considered tax, legal, or accounting advice. Tax laws are subject to change and vary by individual situation. Please consult a qualified tax professional regarding your specific eligibility for Section 179 deductions.