As 2025 comes to a close, businesses have a powerful opportunity to lower their tax liability while investing in the equipment they need to grow. Thanks to updates under the One Big Beautiful Bill Act (OBBBA), the Section 179 deduction and 100% bonus depreciation are more valuable than ever for qualifying equipment purchases.

What Changed for 2025?

Here are the updated highlights for 2025:

  • Deduction limit increased to $2.5 million (up from $1.25 million).

  • Phase-out threshold raised to $4 million in equipment purchases (previously $3.13 million).

  • 100% bonus depreciation restored for qualifying equipment placed in service after January 19, 2025.

For comparison, the IRS official limits for 2025 (before the OBBBA updates) are listed in the 2025 Instructions for Form 2106. These state a maximum Section 179 deduction of $1,250,000 and a phase-out threshold of $3,130,000. The OBBBA provisions expand those limits significantly, creating new opportunities for businesses.

What Qualifies for Office Equipment Purchases?

In addition to higher deduction limits, the OBBBA specifically benefits businesses investing in office technology and equipment. Qualifying items include:

  • Copiers and printers

  • Phone systems and unified communications platforms

  • Business security systems, including cameras and access controls

  • Computers, servers, and off-the-shelf software

  • Both new and used equipment (as long as it is new to your business)

For example, a small business that invests $150,000 in new phone systems, security solutions, and print technology in 2025 can deduct the entire amount under Section 179. For a C-corporation in the 21% tax bracket, that translates to $31,500 in tax savings.

Why Act Before December 31?

Section 179 is a “use it or lose it” benefit. To qualify, equipment must be purchased and in use by the end of the tax year. Acting now can:

  • Deliver significant tax savings (up to 25% of purchase price, depending on bracket).

  • Preserve capital while financing through structures like deferred or seasonal payment plans.

  • Help you upgrade technology, refresh office equipment, or expand capabilities while reducing after-tax costs.

For larger organizations, the savings can be substantial. For instance, a $3.5 million investment in technology upgrades—such as print technology, security systems, computers, and servers—could qualify for $2.5 million in Section 179 deductions plus $1 million in bonus depreciation. At a 35% tax rate, that represents $875,000 in first-year tax savings.

Financing Strategies to Support Growth

With the right financing structure, you can take full advantage of these tax benefits without straining cash flow. Options include :

  • $1 Buyout Lease or Equipment Loan – Treated as ownership for tax purposes, qualifying for full deductions.

  • Fair Market Value Lease – May not qualify for Section 179, but allows deduction of lease payments as operating expenses.

  • Deferred or Seasonal Payment Plans – Acquire equipment now, structure payments later, and still claim deductions this year.

Ready to Take Advantage?

KDI helps businesses turn these tax advantages into real solutions. Whether you’re investing in new office technology, IT, or digital transformation tools, we’ll guide you through equipment selection, financing, and implementation—so you can maximize savings before year-end.

👉 Contact us today to discuss your Section 179 options

Important Note

KDI Office Technology does not provide legal, tax, or accounting advice. Please consult with your tax advisor to determine how Section 179 applies to your specific business situation.