When you’re running a business, every dollar counts, and every decision matters. At Horizon Trailers, we talk to hardworking folks every day who are looking for ways to grow their business efficiently without unnecessary overhead. That’s where Section 179 comes in. It’s a tax code provision that’s often overlooked but could make a serious impact on your bottom line, especially if you’re thinking about purchasing a new or used trailer this year.

What Is Section 179?

Section 179 allows you to deduct the full cost of qualifying equipment in the year it’s placed in service. So, let’s say you purchase a heavy-duty trailer from us and start using it right away. You don’t have to spread the deduction out over several years, you can write off the whole thing on this year’s taxes. This can include everything from trailers and trucks to business equipment, computers, and software. If it’s used for business, it likely qualifies. In 2024, the Section 179 deduction cap is $1.25 million with a phase-out beginning at $3.15 million, while in 2025 the cap doubles to $2.5 million and the phase-out threshold increases to $4 million.

Why Bonus Depreciation Matters in 2025

Bonus Depreciation is a separate incentive that lets you deduct an additional percentage of the equipment cost upfront, beyond what Section 179 covers. For 2025, Bonus Depreciation is back at 100% for qualifying equipment placed in service after January 19th. That’s a major change from 2024, and a serious opportunity if you’ve been putting off upgrading your fleet. Even if your total purchases exceed Section 179 limits, you can still write off a large chunk of the investment using bonus depreciation.

How Much Can You Actually Save? Let’s Do the Math.

Say you buy $10,000 worth of qualifying equipment. If you’re in a 30% tax bracket, your Section 179 deduction could save you $3,000 on your taxes. That brings your net cost down to $7,000. This is real money back into your business, money you can reinvest in more equipment, labor, or fuel. And remember, that’s without accounting for any additional savings from bonus depreciation.

Can You Finance and Still Deduct? Absolutely.

A common question we hear is: “If I finance the equipment, can I still take the full deduction?” The answer is yes. You can finance your trailer, make the first few payments, and still write off the full purchase amount under Section 179. That’s a huge cash flow advantage, especially if you're trying to scale your business without draining your reserves. Just make sure the trailer is placed in service before the end of the tax year, and you're set.

What Kinds of Purchases Qualify?

Section 179 is surprisingly flexible. It covers a wide range of equipment types, including:

1. New and used trailers
2. Heavy equipment and machinery
3. Business vehicles
4. Office equipment and computers
5. Business-use software

Whether you’re a contractor needing a dump trailer, a landscaper upgrading your equipment trailer, or a dealer expanding inventory, these purchases can qualify. If it’s tangible, used for business, and placed into service this year, it probably qualifies.

Why Now’s the Time to Act

Section 179 and Bonus Depreciation aren’t permanent guarantees, they change with federal tax policy. For 2025, the Section 179 cap is $2.5 million, with a phase-out starting at $4 million. That’s higher than the 2024 limit and could decrease in future years depending on legislation. If you're planning to upgrade or expand, locking in those savings this year could be a smart move.

Start Saving Today

At Horizon Trailers, we’re not tax advisors, but we are committed to helping our customers make smart, efficient buying decisions. That's why we teamed up with Mazo Capital Solutions to help you find financing options that fit your budget, whether you’re ready to purchase now or need a plan that spreads out the cost. Their Section 179 calculator is a great place to start visit www.mazocapital.com

If you're ready to make your next move, let’s do it in a way that saves you money and positions your business to end strong 2025.