Section 179 for Equipment Sellers – Leveraging Tax Savings to Boost Sales

Updated: February 2025

Every equipment and vehicle buyer loves to save money. Section 179 of the IRS tax code offers exactly that – it allows businesses to deduct the full purchase price of qualifying equipment, vehicles, and software in the year it’s purchased (or financed). In practical terms, this can mean immediate tax savings of potentially hundreds of thousands of dollars (for 2025, the Section 179 deduction limit is $1,250,000, with a total equipment purchase limit of $3,130,000). For sellers, Section 179 isn’t just a tax code—it’s a powerful sales tool.

Many business owners are not aware of Section 179 until tax time. By then, they may have already missed opportunities to purchase equipment and vehicles. Studies suggest that if every business knew about Section 179, equipment and vehicle sales would spike significantly. This is where you come in. By educating your customers about this tax incentive, you create a win-win situation: the customer saves on taxes, and you potentially close more sales. Section 179 essentially acts like a built-in discount provided by the government’s tax break. (For example, a buyer in a 21% tax bracket who spends $50,000 on a heavy-duty work truck or manufacturing equipment could save roughly $10,500 in taxes, making the effective cost much lower.) When you highlight these savings and emphasize how businesses are essentially investing in their own growth, hesitant buyers may be persuaded to act sooner rather than later.

To make the most of Section 179, sellers should incorporate it into sales pitches, marketing materials, and year-end promotions. Make sure your sales team understands the basics of the deduction and can confidently discuss how it benefits customers. Emphasize the year-end deadline – equipment and vehicles must be put into service by December 31 to count for that tax year. This creates urgency, encouraging customers to buy now rather than later. By positioning Section 179 as a limited-time opportunity, you create a compelling incentive for customers to act before the tax benefit expires.

To help you help your customers, we offer free official “Section 179 Qualified” Badges for display on your website and other sales materials. Displaying these Badges informs buyers that your products are eligible for this robust tax deduction, ultimately saving them money and encouraging them to invest in themselves. Here are a few examples of Badges available for free.

To help you fully capitalize on Section 179, we’ve created in-depth guides on specific strategies and real-world examples. Explore the pages below for actionable tips:

• Sales & Marketing Strategies: Learn how to incorporate Section 179 into your sales pitches and promotional campaigns to drive more equipment, vehicle, and software sales. Read More: Sales & Marketing Strategies
• Financing Strategies: Discover ways to combine financing offers with Section 179’s tax benefits, helping customers afford big purchases while preserving their cash flow. Read More: Financing Strategies
• Case Studies & FAQ: See how other sellers have increased sales using Section 179, and get answers to common questions about using this tax incentive as a selling tool. Read More: Case Studies & FAQ