How To Maximize 2025 Tax Savings
For Industrial Equipment with Section 179
Section 179 Guide for Industrial Equipment
Tavoron helps manufacturers, engineers, and plant leaders take advantage of Section 179, a tax incentive that rewards businesses for investing in productivity-enhancing equipment. In 2025, you can deduct up to $2,500,000 on qualifying automation, robotics, and compressed air systems purchased and installed by December 31.
What Is Section 179?
Section 179 of the IRS tax code lets businesses deduct the full purchase price of qualifying equipment and software used for business operations. Unlike traditional depreciation over 5+ years, this deduction is applied in the same tax year the equipment is put into service.
Key 2025 Limits:
Deduction Limit
Spending Cap
Deadline
Applies To
This tax deduction was created to encourage capital investment in business infrastructure and is especially beneficial to manufacturers upgrading production technology.
Pros and Cons of Section 179
Pros:
- Immediate tax savings: Deduct full equipment cost in the current tax year.
- Improves cash flow: Reduces your taxable income, freeing up cash.
- Applies to a wide range of equipment: Including used equipment and off-the-shelf software.
- Simple to apply: No complicated schedules for multi-year depreciation.
Cons:
- Must be in service by year-end: Delays can disqualify your purchase.
- Spending cap applies: Above $4.0M in total purchases, benefits begin to phase out.
- Limited to taxable income: If you’re not profitable, the deduction has limited impact (though you may carry it forward).
- Not all assets qualify: Real estate and certain custom software are excluded.
Why Section 179 Matters to Manufacturing Customers?
Tavoron works with cross-functional buyers from plant managers to procurement directors. Here’s how Section 179 impacts each stakeholder:
Operations Managers
- Upgrade equipment without waiting years for ROI
- Improve uptime, throughput, and quality
- Justify capital expenses with real-time tax advantages
Engineers & Plant Technologists
- Modernize controls, robotics, or motion systems
- Implement smarter vision and sensing technology
- Use budget-friendly solutions to maximize efficiency
Finance & Procurement Leaders
- Reduce taxable income while optimizing capital spend
- Align investments with quarterly or year-end tax strategies
- Minimize total cost of ownership through upfront deductions
Qualifying Tavoron Equipment
Tavoron offers a full range of Section 179-eligible equipment and systems for automation, robotics, integration, and compressed air.
Robotics
Control Systems
Compressed Air
Sensors
Machine Vision
Software
Custom Systems
Equipment must be installed and operational by Dec. 31, 2025 to qualify.
Real-World Savings Example
We don’t just sell equipment, we help you plan smart capital investments around your financial and operational goals.
Scenario: A company purchases $250,000 in qualifying automation and compressed air equipment from Tavoron.
Section 179 Deduction: The full $250,000 is deductible.
Estimated Tax Savings: $52,000 or more, depending on the company’s tax bracket.
By front-loading the deduction, you accelerate ROI and reduce the effective cost of your capital investment.
Why You Should Act Now
Year-end deadlines often create bottlenecks in equipment availability, installation labor, and delivery timelines. Many automation and air systems have lead times of 6–12 weeks or more.
Planning Early Ensures:
- Equipment is placed in service on time
- Your tax deduction is not at risk
- No delays from high Q4 demand or shipping constraints
How Tavoron Supports You
We don’t just sell equipment, we help you plan smart capital investments around your financial and operational goals.
Our Support Includes:
Helping identify eligible Section 179 equipment
Providing accurate quotes for internal approvals
Scheduling installation in advance
Assistance coordinating documentation for your tax advisor
FAQs About Section 179 and Tavoron Equipment
Does used equipment qualify for Section 179?
Yes, used equipment may qualify as long as it’s “new to you” and meets IRS requirements.
Can I deduct software under Section 179?
Yes, if the software is off-the-shelf and used in your business.
What if my equipment arrives late?
The deduction only applies if the equipment is in service by December 31—so early planning is essential.
If you’re considering equipment purchases this year, we can help you assess your eligibility, plan timelines, and estimate your potential tax savings.
FIll out our form below to Request a Quote or Schedule a Planning Call.
