As an equipment owner, you know that investing in the right tools is critical to getting the job done efficiently. But did you know there’s a tax incentive that can make purchasing or financing equipment even more affordable? It’s called the Section 179 tax deduction, and it’s designed to help business owners like you save money while upgrading your equipment.
Whether you’re looking to add new attachments, upgrade your fleet, or invest in cutting-edge attachments like the Eterra Typhoon Clearing Mower or the Eterra PDX-1000 Post Driver, Section 179 can help make it possible.
What is the Section 179 Deduction?
Section 179 allows businesses to deduct the full purchase price of qualifying equipment and software used for work. Instead of spreading out deductions over several years through depreciation, you can write off the entire cost in the same year the equipment is purchased and put into service.
For the 2024 tax year:
- Deduction Limit: $1,220,000
- Spending Cap: $3,050,000
This means you can deduct up to $1.22 million on qualifying purchases, as long as your total equipment investments for the year don’t exceed $3.05 million.
Why Section 179 Matters to Equipment Owners
1. Immediate Savings on Your Investment
Buying a piece of equipment often means a significant upfront cost. With Section 179, you can deduct the full purchase price from your taxable income, putting money back in your pocket come tax time.
- Example: If you purchase a $50,000 skid steer attachment and are in the 24% tax bracket, you could save $12,000 on your taxes.
2. Upgrade or Expand Your Fleet Affordably
Whether you’re a landscaper, contractor, or farmer, equipment upgrades can take your operations to the next level. Section 179 makes it easier to invest in advanced tools and attachments without breaking your budget.
3. Maximize Your Cash Flow
Since the deduction lowers your taxable income, you’ll have more funds available to reinvest in your business, pay off loans, or cover other expenses.
4. Applies to New and Used Equipment
Unlike some tax incentives, Section 179 applies to both new and used equipment. As long as the equipment is used for business purposes more than 50% of the time, it qualifies.
What Equipment Qualifies?
Section 179 covers a wide range of equipment, including:
- Skid steer attachments like brush cutters, augers, and stump grinders
- Compact loaders
- Excavator attachments
- Office equipment and off-the-shelf software
If it helps your business run more efficiently, chances are it qualifies.
Leasing: Another Way to Save with Section 179
If buying equipment outright feels like a stretch, leasing can be a game-changer. Section 179 applies to financed or leased equipment, meaning you can still deduct the full purchase price even if you’re making monthly payments.
Benefits of Leasing:
- Smaller Upfront Costs: Leasing lets you acquire high-end equipment with minimal initial investment.
- Deduct Full Cost, Pay Over Time: Even though you’re financing the equipment, you can deduct the full cost as long as it’s in service by the end of the year.
- Better Cash Flow: Leasing keeps more money in your business while still giving you the tools you need.
Why Act Now?
The Section 179 deduction is only available for equipment placed into service by December 31, 2024. If you’re thinking about upgrading or expanding your equipment, now’s the time to act.
How to Get Started:
- Evaluate your equipment needs. Look for tools or attachments that will improve efficiency or expand your capabilities.
- Explore your financing options. If you’re interested in leasing, many dealers (including our network) offer flexible plans.
- Place your order early. Avoid end-of-year delays by getting your equipment in service before the deadline.
Get More Value with Eterra
At Eterra, we offer a range of innovative attachments designed to help you tackle even the toughest jobs. From our Vortex Rotary Brush Cutter to the Hurricane Concrete Mixer, our products are built to last and deliver outstanding performance.
By combining Section 179 savings with Eterra’s premium equipment, you can save money while upgrading your tools for the long haul.
Ready to Save? Don’t wait—contact your local dealer or explore our products and give us a call to take full advantage of Section 179 before the year ends. Whether you purchase or lease, this is your opportunity to invest in your business while lowering your tax bill.