​

It won't be long before 2024 draws to a close, and before you know it, it will be time to submit your 2024 taxes. While there is still time, there are things you can do this year to improve your business's efficiency and productivity while reducing your tax bill.

For small- and medium-sized farms and contractors, tax incentives, such as Section 179 of the Internal Revenue Code, may help reduce their taxable income. Section 179 allows businesses to deduct the full purchase price of qualifying new and used equipment purchased or financed during the tax year, rather than depreciating it over time.

This deduction encourages businesses to invest in new equipment and technology, which can lead to increased productivity, efficiency and sustainability. It's particularly beneficial if you're looking to upgrade a portion of your operation.

Here's how Section 179 works
In short, Section 179 allows a taxpayer to treat the cost of qualified property purchases, such as machinery and equipment used in a trade or business, as an expense in the year it is placed in service. * Section 179 can help reduce your 2024 taxable income by allowing an immediate write-off of up to $1,220,000 on qualifying purchases. In addition to the Section 179 deduction, businesses can also take advantage of 60% bonus depreciation for qualifying equipment. This can be used for any remaining cost that exceeds the Section 179 limit, further reducing taxable income.

If you finance your equipment purchase, you can still take the full allowable Section 179 deduction. This means you can deduct the total purchase price of the equipment while only paying a fraction of it in the first year, making it a powerful tool for managing your cash flow. Calculate your tax savings using our sponsored tax calculator .

Why buy equipment now?
These tax savings can allow you to make a real investment in your operation. By reducing your taxable income, you reduce your tax bill in the year of purchase. That can improve your cash flow, allowing you to retain more cash for other business needs. With the money you save on taxes, you may be able to update your equipment, take advantage of the latest technology, expand your acreage and create new marketing opportunities.

Investing in efficiency-boosting equipment now will put you ahead of the game for the coming year. There's always going to be a need for machinery. Getting the best deal possible while that deal is available is a smart business move. Tax codes are always being updated, so there's no guarantee that the same provisions from 2024 will apply next year.

What's the best way to take advantage of equipment deductions?
Given the complexity of tax laws and the potential impact on your business, it's advisable to consult a trusted certified public accountant or other tax professional to ensure you maximize the benefits of Section 179. CNH dealers can help by offering equipment advice and creating a streamlined purchasing experience that puts you front and center.

Using Section 179 effectively can result in significant tax savings and financial flexibility, making it a valuable tool for enhancing your operation in 2025. Talk to your local dealer to learn more about how you can take advantage of Section 179 deductions. 

*Equipment must be placed into service between January 1, 2024, to December 31, 2024. CNH Capital does not provide tax, legal or accounting advice. You are strongly encouraged to seek your own professional advice on the proper treatment of these transactions.​

​