Section 179 is a tax code designed to encourage small and mid-sized businesses to invest in their growth. It allows businesses to deduct the entire cost of qualifying equipment and software purchased or financed during the year, instead of depreciating it over time. For 2024, businesses can deduct up to $1,220,000 on new or used equipment, with a spending cap of $3,050,000.*
The taxes you save with the deduction will almost always exceed your cash outlay for the year when you combine an Equipment Finance
Agreement (EFA) with your Section 179 Deduction. The amount you save in taxes can exceed the payments you make this year, making this a
very bottom-line-friendly deduction. In many cases, the tax savings from the deduction will make your bank account larger than if you never financed the equipment in the first place.
Section 179 allows businesses to write off the entire purchase/finance price of qualifying equipment for the current tax year. This helps lower operating costs and allows businesses to invest in themselves by adding capital equipment – equipment they use to improve their operations all while allowing the business to keep more tax dollars and further increase revenue.
If you are a small or medium-sized business owner who has purchased, finance, or leased equipment and placed it into service during the calendar year, then you need to elect to take the Section 179 Deduction to ensure that your business captures the available tax savings – it is not automatic. To elect to take the Section 179 Deduction simply fill out Part 1 of the IRS form 4562 and attached it to your tax return.
Please note: While every effort has been made to ensure the accuracy of the information on this page, tax laws, eligibility requirements, and the specifics of Section 179 financing can change without notice. Please reach out to an expert or your tax consultant for the most current information.
Visit Section179.org to learn more.
Let’s make this a win-win for your business. If you’d like more guidance on leveraging Section 179 to boost your sales, or if you want personalized support in communicating with your customers, contact us at sales@centrafunding.com or by phone at 888-779-4629 option #6.
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