How to Use Section 179 for Year-End Equipment Financing and Tax Savings
By Mark Paetznick, Vice President – Equipment Financing and Leasing
Why Year-End is the Right Time to Invest
This is the time of year when experienced business owners pause to assess how their business performed and review projections for the fourth quarter. If your business is profitable and growing, this may be the ideal time to invest in equipment while taking advantage of significant tax benefits under Section 179 of the U.S. Tax Code.
While every business should confirm eligibility with their tax advisor, here are a few important updates and reminders for 2025.
Section 179 in 2025: What’s New
- Deduction limit: For 2025, the maximum Section 179 deduction has increased to $2.5 million (indexed for inflation).
- Spending cap: Businesses can deduct up to the first $4 million of qualifying equipment purchases. Above this threshold, deductions begin to phase out dollar for dollar.
- Bonus depreciation: In addition to Section 179, businesses may still benefit from bonus depreciation rules, though it’s critical to check with your tax professional on your allowable deduction.
- Qualifying assets: Most new and used business equipment, off-the-shelf software, and certain improvements to non-residential property are eligible.
These updates make Section 179 one of the most powerful tax-saving tools for profitable businesses in 2025.
Why Profitability Matters
Section 179 incentivizes asset acquisition for profitable businesses, which often act in the fourth quarter when they have a clear line of sight on earnings. Because the deduction accelerates depreciation, businesses can typically expense the full purchase cost in the same year rather than depreciating it over several years.
In short, if your business is profitable and planning for growth, Section 179 can help lower your tax bill and free up cash flow.
How Scale Bank Helps You Leverage Section 179
Smart equipment financing can help you unlock Section 179 benefits without straining your working capital. At Scale Bank, we design financing solutions that align with your goals, including:
- Up to 100% financing so you can conserve cash reserves.
- Deferred payments for seasonal industries, such as construction, align with revenue cycles.
- Financing that includes implementation costs, so you’re covered beyond the purchase price.
- Leasing options that allow us to pass on depreciation savings if your business can’t directly take advantage of Section 179.
Our financing professionals understand that equipment is more than a purchase, it’s a growth tool. We’ll help you structure financing so your equipment starts working for you right away.
Equipment Financing Trends in 2025
Here’s what we’re seeing this year:
- Automation to offset labor shortages. With hiring challenges persisting, many businesses are investing in automation tools that streamline repetitive but critical tasks.
- Efficiency-driven upgrades. Businesses are upgrading equipment to gain efficiencies, such as reduced footprints, improved functionality, or lower operating costs.
- Forward-looking planning. Companies are budgeting now for 2026 and securing pre-approvals to strengthen supplier negotiations and secure advantageous tax positions.
Not Eligible for Section 179?
If your business can’t fully utilize Section 179 this year, there are still smart ways to invest:
- Flexible financing options tailored to your situation.
- Lease structures where depreciation benefits are passed along.
- Advisory support to align your financing with future growth strategies.
At Scale Bank, we meet you where you are and help ensure that equipment investments make sense for both today and tomorrow.
Partner with Scale Bank
Because we’re committed to knowing you and your business, you’ll receive:
- Tailored equipment financing solutions.
- Quick, transparent decision-making.
- Ongoing consultation to keep your business growing.
Contact one of our experienced equipment financing and leasing experts today.
Need immediate working capital? Visit Scale Funding and Provident Commercial Finance for invoice factoring services.
Mark Paetznick is Vice President of Equipment Financing and Leasing at Scale Bank, bringing over 30 years of experience helping businesses finance growth through tailored, strategic solutions. Known for his consultative approach and creative problem-solving, Mark partners with clients to structure financing that supports both their immediate needs and long-term goals.
Mark Paetznick
Vice President – Equipment Financing and Leasing
Phone: 952-830-7203
Email: mark.paetznick@scale.bank
