If you’ve been putting off upgrading your technology or replacing outdated hardware, Section 179 might be your best incentive to act before the end of the year. This tax deduction allows businesses to write off the full purchase price of qualifying equipment including computers, servers, software, and other technology in the year it’s purchased, rather than depreciating it over time. That means you can invest in better performance, stronger security, and modern tools for your team while reducing your tax bill for 2025.
What is Section 179?
Section 179 of the IRS tax code lets businesses deduct the full cost of qualifying equipment purchased or financed during the tax year. For 2025, the deduction limit has increased to $2.5 million which is double last year’s limit of $1.25 million.
In short: You can upgrade now and get an immediate tax benefit.
What Qualifies Under Section 179?
- Hardware: Servers, computers, networking equipment, firewalls, etc.
- Software: Business software (including certain subscriptions or licenses)
- Technology upgrades implemented in 2025
How Your Business Can Capitalize
- Replace aging or unsupported equipment (think: Windows 10 end-of-life systems)
- Upgrade servers or network infrastructure to improve security and reliability
- Invest in technology that supports scalability, hybrid work, or compliance
- Get a head start on 2026 initiatives while saving in this tax year!
Delaying upgrades often leads to higher maintenance costs, security risks, and productivity loss. Section 179 offers a financial opportunity to upgrade systems now while optimizing your tax position. To qualify, purchases must be installed and ready for use by December 31, 2025.
Example: A small business invests $50,000 in new workstations and networking gear. Thanks to Section 179, they can deduct the full $50,000 from their taxable income while reducing their tax liability and getting modern, more secure equipment at a lower net cost.
Start Planning NOW!
Liberty Technology helps businesses modernize their IT infrastructure while maximizing savings opportunities like Section 179. Contact us today to review your current environment and identify smart upgrades that qualify for this year’s deduction.
*Always consult your CPA or tax advisor before making financial decisions. This information is for general guidance only.
