Section 179 and 100% Bonus Depreciation: 2025 Fast Facts for Farmers and Businesses

Navigating year-end equipment purchases has changed for 2025, thanks to updates in Section 179 and the permanent return of 100% bonus depreciation.

Here are the key updates and new benefits that can help farms and small businesses maximize their tax savings and plan smarter for equipment upgrades this year.

• Section 179 is bigger in 2025: Businesses can expense up to $2,500,000 of qualifying equipment, with benefits phasing out as total annual purchases move past $4,000,000.​

• 100% bonus depreciation is back and permanent: Qualifying property acquired and placed in service after January 19, 2025, can generally be written off in full in year one, on top of Section 179 where applicable.​

• New or used equipment can qualify: Many tractors, combines, hay tools, loaders, compact and commercial equipment, technology, and certain structures may be eligible if they are new to your business and used predominantly for business.​

• “Placed in service” by December 31 matters: To capture 2025 deductions, equipment usually must be delivered, set up, and ready for use by year‑end—not just ordered or sitting on a quote.​

• Stronger planning opportunities for larger buys: The combination of higher Section 179 limits and permanent 100% bonus depreciation gives farmers and businesses more flexibility to match big equipment purchases to their 2025 and future tax plans.​

• Every situation is different: Income limits, acquisition dates, and existing depreciation all affect results, so using Section 179 and bonus depreciation is most effective when coordinated with a tax professional.

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