2025 Section 179 Tax Deduction Overview & Limits

Curious about the 2025 Section 179 tax deduction limits and whether your business qualifies? Woody Ford works closely with businesses to help you understand how the latest Section 179 deduction, spending cap, and bonus depreciation rules can work for you.

This incentive allows you to deduct a substantial portion of new or used vehicle purchases, enhancing your 2025 tax planning. Dedicated to supporting small businesses, we stay updated on current IRS guidelines, so you can benefit from maximizing your write-off potential and streamlining your year-end purchasing decisions. 

• 2025 Deduction Limit: $2,500,000¹ 
• Good on new and used equipment (as long as new to the buyer)
• Purchased or leased

• 2025 Spending Cap: $4,000,000¹ -- This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar-for-dollar basis (making it a true small-business incentive) 
• Complete phase-out at $6,500,000

• 2025 Bonus Depreciation: 100%¹ 
• Defined as: a tax incentive that allows a business to immediately deduct a large percentage of the purchase price of eligible assets
• Generally taken after the Spending Cap is reached
•  Applies to new and used

• Must be purchased and put into use before Dec. 31, 2025¹
• Must be used for business purposes more than 50% of the time
• Must be titled in the company's name (not the company's owner's name)