You may qualify for 100% accelerated depreciation* on your next machine purchase. Contact your tax advisor to discuss your options as they relate to Section 179 expenses and accelerated depreciation. More information available on irs.gov, and section179.org.

WHY BONUS DEPRECIATION MATTERS

• Section 168(k) features expanded bonus depreciation rules that strongly benefit construction equipment owners.
• 100% First-Year Write-Off – Deduct the full purchase price of qualifying equipment in the year you place it in service.
• New & Used Equipment Qualifies – Applies to equipment that is new to your business.
• Immediate Cash Flow Advantage – Lower taxable income today and free up cash for reinvestment.
• No Dollar Cap – Unlike Section 179, there is no maximum deduction limit

SECTION 179 UPDATES

IMMEDIATE FULL DEDUCTION

• Deduct 100% of the purchase price of construction equipment in the first year, instead of depreciating the equipment over 5-7 years.
• For example, a $250,000 excavator can be fully deducted from taxable income, saving tens of thousands in taxes.

IMPROVED CASH FLOW

The tax savings can be used to:

• Pay down equipment loans faster
• Invest in more projects
• Hire additional workers
• This is especially helpful for small to mid-sized contractors who need to manage cash tightly.

APPLIES TO NEW AND USED EQUIPMENT

• The accelerated depreciation applies to both new and used construction equipment, as long as it’s “new to you.”
• This gives buyers more flexibility in choosing cost-effective options.

COMPETITIVE ADVANTAGE

• Contractors who upgrade their fleet can take on larger or more complex jobs, increasing revenue potential.
• Newer equipment is often more fuel-efficient and reliable, reducing downtime and maintenance costs.

MORE FLEXIBILITY

• Buyers can combine Section 179 expensing with accelerated depreciation for even more flexibility, especially if they hit the Section 179 cap.