Section 179 American Recovery and Reinvestment Act
$2,500,000 is the deduction limit that is good on new and used equipment, as well as off-the-shelf software. This limit is only good for 2025, and the equipment must be financed/purchased and put into service by the end of 12/31/2025. $4,000,000 is the spending cap and is the maximum amount that can be spent on equipment before the IRS Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis.
100% Bonus Depreciation is generally taken after the IRS Section 179 Spending Cap is reached.
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