Plan to invest in used heavy equipment or John Deere equipment in 2025? Section 179, a core tax code from the Internal Revenue Service (IRs) has changed, allowing businesses to deduct the full purchase price of qualifying equipment if secured to work on a job site or farm before the end of this calendar year.
Why Does This Matter?
Under Section 179, heavy equipment purchased for business use qualifies not only for tax deduction(s) but also bonus depreciation depending on the investment, make and model. Heavy equipment buyers have previously reported these benefits when they’ve made a smart investment and deducted more.
1. Save on Taxes Now
Instead of waiting years to recover your investment, Section 179 allows deductions up to $2.5 million in equipment purchases. This deduction lowers your 2025 tax bill and frees up cash for other business needs — whether you purchase new John Deere equipment or low-hour used machines.
2. Increase Cash Flow
Section 179 helps you retain more capital in your business by reducing taxable income. With the extra cash flow, contractors or farmers can reinvest into operation costs including ag or construction equipment or technology without going over budget.
3. Fuel Strategic Growth
Section 179 encourages reinvestment into operational abilities so teams can take on new projects and create efficiencies or expand revenue.
Contractors or farmers have the choice to modernize their fleet, adopt new technology or scale their business — and immediately benefit financially.
What’s Changing?
Year
| 2023
| 2024
| 2025
|
Maximum Deduction
| $1,160,000
| $1,220,000
| $2,500,000
|
Phase-out Threshold
| $2,890,000
| $3,050,000
| $4,000,000
|
Bonus Depreciation
| 80%
| 60%
| 100%
|
Equipment
| New and Used
| New and Used
| New and Used
|
Contractors or farmers can deduct 100% bonus deprecation for qualifying machines. A bonus deprecation can be combined with the initial maximum deduction.
Eligible machines and technology must be used more than half of the time for business purposes. The following assets must be placed into service by December 31, 2025:
- New and used heavy equipment
- Business vehicles over 6,000 lbs GVWR
- Off-the-shelf software
Whether people are buying used John Deere tractors, excavators or precision ag technology, RDO Equipment Co. Can help to select the right equipment and financing options to maximize your Section 179 benefits.
Invest in Business, Use Section 179
Visit your local RDO Equipment Co. store or browse our inventory of used heavy equipment to explore qualifying machines and start planning your 2025 tax strategy.
RDO Equipment Co. and John Deere Financial provide the information on this site as customer service. However, it should not be construed as tax advice. Find the most up-to-date information on Section179.org and speak to your tax advisor to ensure your business gets the most out of these tax-saving opportunities.
RDO Equipment Co.
Founded in 1968, RDO Equipment Co. sells and supports intelligently connected agriculture, construction, environmental, irrigation, positioning, and surveying equipment from leading manufacturers, including John Deere, Vermeer, and Topcon. With more than 80 locations across the U.S. and partnerships in Africa, Australia, Mexico and Ukraine, we deliver creative solutions so our customers can grow and build the world.
