Section 179: A Smart Year-End Tax Break for Your Business

If you’re planning to buy or finance new equipment this year, here’s some good news: Section 179 of the tax code lets you deduct the full purchase price of qualifying equipment you buy or finance during the tax year, instead of spreading out depreciation over many years. It’s a great way to reduce your taxable income and invest back into your business before year-end.

How Section 179 Works

Under Section 179, businesses can deduct the entire cost of eligible equipment that’s purchased or financed and put into use by December 31st.

You can use this deduction for new or used equipment, even if it’s financed through CapX Funding.

For 2025

• Deduction limit: up to $2.5 million

• Phase-out starts after $4 million in total purchases

• Business income limit applies (you can’t deduct more than your total taxable income, but you can carry unused amounts forward)

What Qualifies 

Most business equipment financed through CapX Funding can qualify, including:

• Machinery and manufacturing equipment

• Commercial vehicles and work trucks

• Computers, IT systems, and office furniture

• Off-the-shelf business software

• Certain building improvements (like HVAC, roofing, or alarm systems)

Always check with your tax advisor to confirm eligibility for your business.

Why It Matters

Section 179 is designed to help small and mid-sized businesses:

• Lower taxes right away: bigger deduction now instead of later

• Improve cash flow: combine financing with immediate tax savings

• Encourage growth: reinvest in better equipment and tools

You don’t have to pay in full to benefit, as financed equipment often qualifies, too.

Take Advantage Before Year-End

If you’re planning new equipment purchases, now’s the time. Financing through CapX Funding can help you get what you need in place, and ready to claim the deduction before December 31st.

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Contact us today to review your options and make sure your next purchase qualifies under Section 179.