What’s Changing with Section 179 and Bonus Depreciation in 2025?

Section 179 for New and Used Equipment

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As we move into 2025, there are some major updates to Section 179 deductions and Bonus Depreciation that could make 2025 one of the best years yet for investing in new and used construction equipment. Whether you’re running heavy machinery on large job sites or compact track loaders for smaller projects, these tax benefits can significantly reduce your equipment ownership costs.

At Luby Equipment, we want our customers to understand how these changes can help them maximize their investment.

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Cody D

1 week ago

I had a hydraulic problem on my skid steer and called all my local dealers in the lake Ozark area. They were all weeks out and really acted like they didn’t want to take the job. We called Luby Equipment out of Springfield and they pulled it in the next day to diagnose, and got the ball rolling. Travis at the desk answered all our phone calls and let us know the progress. If my Case machine needs work from here on out, I’ll be taking it to Luby. Customer service was tip top

Response from the owner:Cody, we appreciate you taking the time to leave us a review. We’re glad we could get you taken care of on such short notice. We know downtime is money lost, so keeping customers updated and getting machines back to work matters. We’ll make sure Travis and the Springfield team see this.

Christopher Bugg

2 months ago

Guys are professional and know what there talking about

Response from the owner:We appreciate you taking the time to leave us a review Christopher. Please reach out if you need anything. - Luby Equipment Team

Joseph Martinez

3 months ago

william ashworth

3 months ago

Response from the owner:Thank you so much for choosing Luby Equipment, William. Please don’t hesitate to reach out if you need anything at all. We appreciate the opportunity to earn your business and look forward to supporting you with parts, service, rentals, or your next machine.

Cori Kremmer

4 months ago

Great service and nice clean building!

Response from the owner:It has been our pleasure to work with you Cori, please don't hesitate to reach out if you have any questions or need anything in the future!

Mustafa Elsherif

5 months ago

Josh was great to work with, He made everything easy and smooth. Highly recommend.

Mustafa Elsherif

5 months ago

Josh was great to work with, He made everything easy and smooth. Highly recommend.

Homer Brinker

5 months ago

Ethan Uphaus

6 months ago

josh was amazing salesman and was very patient with us through the entire process of getting a new machine and went above and beyond for us in all of our needs for the best price possible thank you again

Matthew Walth

6 months ago

Randy is my salesman and is always great, quick to answer a phone and always calls back if missed. The inside staff is always great to dealw with and full of knowledge while willing to work things out with you in a pinch.

Daryl Tibbs

6 months ago

Thanks for the very good quality and services yall have provided josh is a great guy

Doug Toops

7 months ago

Worked well with getting the job done

darren roberson

8 months ago

Bill Silzell

9 months ago

Your parts man is a great man extremely knowledgeable.

Mike “Mob” O'Brien

9 months ago

bros yolo miller

10 months ago

Kaitlyn Killy

11 months ago

Luke in parts took care of my father and his business for so many years. He gave phenomenal service. Professional and very knowledgeable. He went above and beyond without thinking twice every time. He’s a true asset to your company.

Response from the owner:Thank you, Kaitlyn! I will make sure Luke sees this.

Christopher Lair

11 months ago

Will definitely be checking there for parts in the future got what I needed fast!

Response from the owner:Thank you for the kind words! We know how important it is to keep your equipment running, and we’re glad we had the parts you needed in stock and could get them to you quickly. We appreciate your business and are always here to help!

Meaka Anne Knight

1 year ago

Robert Rodgers

1 year ago

Jenny was awesome! She was very informative and made the process very easy. Got a great deal on a nice machine. Will definitely be back for any future purchases.

Response from the owner:Thank you for the great review Robert!

Mark and Elizabeth Davidson

1 year ago

Great service... I will be back!!

Response from the owner:Thank you!

Asa Hutchins

1 year ago

They have been really helpful.

Response from the owner:Thank you Asa!

Chris and Holly Hughes

1 year ago

Response from the owner:Thank you for the 5 star review!

Cody Skinner

1 year ago

Response from the owner:Thank you Cody for the 5 star review!

Victor Dragan

1 year ago

Great place to deliver. Facility have 2 ramps for low pro and flatbed. Nice people. In and out 20 min

Response from the owner:Thank you Victor!

Section 179 Deduction

Section 179 allows businesses to deduct the full purchase price of qualifying equipment—such as excavators, dozers, track loaders, and other machines—purchased or financed during the tax year.

In 2025, the maximum deduction has more than doubled compared to 2024.

That means in 2025, businesses can deduct up to $2.5 million in qualifying equipment purchases, with the deduction phasing out after $4 million in total equipment purchases.

Bonus Depreciation

Bonus depreciation allows businesses to deduct a large percentage of the cost of eligible equipment in the first year it’s placed into service.

Here’s how bonus depreciation has changed over the past few years:

In 2025, 100% bonus depreciation is back, allowing businesses to write off the entire cost of qualifying new or used equipment.

What This Means for Contractors

These changes make 2025 an incredible opportunity for contractors to upgrade fleets or expand capacity:

Applies to both new and used equipment: Whether you’re buying a brand-new CASE excavator or a well-maintained Takeuchi track loader, the deductions apply.

Bigger Section 179 deductions: Deduct more than twice the amount compared to 2024.

Return of 100% bonus depreciation: Get the full benefit of your equipment purchase in year one.

Section 179 Tax Benefit Calculator

Disclaimer: The information provided by Luby Equipment regarding Section 179 and Bonus Depreciation is for general informational purposes only and may not reflect the latest legal or tax developments. While we strive to share up-to-date resources in line with IRS guidelines, Luby Equipment is not an official IRS resource or a tax advisor. Always consult a qualified tax professional for personalized advice regarding your specific situation.