Section 179 expensing

[Jeff]

Can someone decipher this for those of us that don't buy machines?
Is this a huge win? Or a just minor bump in tax breaks?


In 2025, businesses can fully deduct the cost of qualifying CNC machines placed in service after January 19th, thanks to bonus depreciation and Section 179 expensing.
Here's how it works:
Bonus Depreciation: The "One Big Beautiful Bill Act" (OBBBA) permanently reinstates 100% bonus depreciation for qualified property acquired and placed in service after January 19, 2025. This means businesses can deduct the entire cost of the CNC machine in the year it's put into use. This applies to both new and used equipment that is "new to your business".
Section 179 Expensing: This deduction allows businesses to expense the full purchase price of qualifying equipment and software in the year it's placed in service, instead of depreciating it over several years. For 2025, the maximum Section 179 deduction is \$1,250,000, but this amount begins to phase out when a business purchases more than \$3,130,000 in equipment.
This deduction is beneficial for businesses seeking to maximize their deductions in a single year, particularly for smaller purchases.
CNC machines must be used for business purposes more than 50% of the time to qualify for the Section 179 Deduction.

[JParis]

Basically it allows the total write down of approved items this year....doesn't really give anything more than was already available, albeit over multiple years.

Most businesses I know prefer the year over year write downs...though I suppose some might avail themselves to taking it in one year....

Big thing, if you have money to spend and buy a machine, put it into service, it might offer a nice incentive to purchase machinery for some