Grow Your Small Business in 2025 With the Section 179 Deduction

Unlock instant tax savings with Section 179 — allowing your business to write off the full cost of qualifying equipment the same year you invest in it.

For small businesses, contractors, and trade professionals, smart financial decisions can make the difference between simply getting by and truly growing. Section 179 is one of the most powerful tools available to help business owners invest in the equipment they need while keeping more cash on hand throughout the year.

Instead of depreciating equipment over several years, Section 179 lets eligible businesses deduct the full purchase price of qualifying equipment in the year it is placed into service. That means the trucks, machinery, and technology you buy today can deliver immediate tax benefits.

Section 179 is a federal tax incentive designed to encourage businesses to reinvest in themselves. In 2025, it allows companies to:

• Deduct the full cost of qualifying equipment and certain property in the year it is used for business
• Apply the deduction to both new and used equipment (as long as it’s new to your business)
• Use the deduction on a wide range of assets used in daily operations

Annual deduction limits, income thresholds, and phase-out rules apply each year, so it’s important to work with a tax professional to determine exactly how much you can expense in the current tax year.

Many of the assets that businesses rely on every day may be eligible under Section 179, such as:

• Work trucks, cargo vans, and commercial vehicles
• Jobsite equipment like skid steers, compressors, and generators
• Utility, dump, or service bodies installed on work trucks
• Office equipment, computers, and tablets
• Software and business technology
• Machinery and tools used in construction or manufacturing
• Certain improvements made to nonresidential buildings

The equipment must be used more than 50% for business and placed in service during the tax year in order to claim the deduction.

Yes — many commercial vehicles qualify, including numerous truck and van configurations sold by Kunes Commercial.

In general, a business vehicle may qualify if:

• It is used primarily for business
• It meets weight and classification requirements
• It is placed in service during the tax year

Different types of vehicles fall under different deduction rules. For example:

• Light-duty vehicles may have more limited deductions
• Heavy-duty trucks and vans often qualify for larger deductions
• Specialty work vehicles may have unique treatment depending on their intended use

Because the rules can vary by vehicle type, it’s wise to involve your tax professional before planning your purchases.

To claim Section 179, businesses typically report the deduction on the annual depreciation form submitted with their tax return. You’ll need to keep documentation such as:

• Purchase records and invoices
• Proof of when the equipment was placed into service
• Business-use percentage for vehicles or multi-use assets

Your accountant or tax advisor will determine how much of the purchase price is eligible and whether combining Section 179 with other depreciation strategies makes sense for your situation.

If you're thinking about purchasing or upgrading equipment this year, consider these tips:

• Buy early enough to place assets into service before December 31
• Coordinate with your tax advisor to confirm limits and eligibility
• Choose equipment that supports your growth goals, not just year-end tax savings
• Get the right documentation from your dealership or equipment provider

At Kunes Commercial, we can help you select the right trucks, vans, and work-ready solutions — from service bodies and flatbeds to cargo vans and heavy-duty pickups. While we cannot offer tax advice, we can ensure you have the accurate specifications and paperwork needed for your tax professional.

If you're ready to upgrade your fleet or equipment in 2025, Kunes Commercial is here to help. Let us match you with the right work-ready vehicles so you can focus on growing your business — and let your tax professional help you make the most of Section 179.

This information is for general marketing and educational purposes only and should not be considered tax or legal advice. Eligibility and deduction limits vary, and construction companies should consult a qualified tax professional to determine how Section 179 applies to their specific situation. Consult your tax professional to know specifically which vehicles qualify. All equipment and vehicles must be purchased and placed into service by December 31, 2025 to qualify for Section 179 in the 2025 tax year.