How an IRS Deduction Could Help Boost Your Sales

As an equipment vendor, your customers look to you to help them with their equipment needs, often with price as a top consideration. By making your customers aware of their potential tax savings under Section 179 of the IRS Code, you could help them save on the cost of their equipment without having to lower the price you charge.

Section 179 encourages business owners to invest in equipment or technology by allowing them to deduct a substantial amount of the asset’s value in the first year. That means if your customers put your equipment in use before December 31, 2025, they may be able to deduct up to $1,250,000 from their federal income taxes.

How do I let my customers know about Section 179?

• Educate through marketing: Include Section 179 info in brochures, email campaigns, your website, even your showroom if you have one. Highlight how it can reduce their tax bill. Share a link to articles such as this in an email or text (make sure your business stays within the guidelines and regulations for CAN-SPAM or permission-based marketing if you use either of these marketing tactics).
• Use urgency: Promote it as a “use-it-or-lose-it” opportunity before year-end to encourage purchases.
• Train your sales team: Make sure they can explain the basics and refer customers to tax professionals for details (this can be a great way to establish or strengthen a relationship with tax professionals in your area, possibly establishing referrals that flow both ways).
• Host webinars or info sessions: Partner with a CPA to walk customers through how it works and how it applies to their business.

What are some of the highlights of Section 179?

• Immediate tax savings: Businesses could deduct the full purchase price of qualifying equipment in the year it's placed in service, rather than depreciating it over time.
• High deduction limits: For 2025, the maximum deduction is $1,250,000, with a phase-out beginning at $3,050,000 in total equipment purchases.
• Wide range of eligible property: Includes new and used machinery, vehicles, office furniture, computers, and even certain building improvements.

How do I know if Section 179 applies to my customers?

• Type of Business: A sole proprietor, partnership, or corporation can fully expense qualified tangible business property the year it is put in use if the qualifying assets are used for business purposes more than 50% of the time.
• Spending Cap: The business cannot spend more than $4.38 million per year for equipment.
• Business use is key: If your customer is buying equipment for use in a trade or business, Section 179 likely applies.
• Placed in service: The equipment must be delivered and put into use by the business before December 31, 2025—not just purchased.
• Consult a tax advisor: Encourage customers to confirm eligibility with their accountant.

Can my customers finance equipment and still take the deduction?

Yes! Financing options such as capital leases and equipment finance agreements are allowed. As long as the equipment is placed in service during the tax year, customers can take advantage of the 179 deduction on their equipment even if they haven’t paid it off yet. This makes Section 179 a powerful tool for cash flow management regardless of the type of business your customers are.

Does Section 179 only apply to new equipment?

Nope—used equipment qualifies too, as long as it’s new to the buyer and used for business purposes. This includes refurbished machinery, pre-owned vehicles, and secondhand office furniture. It may even qualify for bonus depreciation, provided it is “first use” by the purchasing business.