guide

Cut Taxes When You Buy Before the End of the Year

Download this guide to learn how Section 179 and Special Depreciation deductions can dramatically cut your tax bill if you buy a new sign this year. 

The latest tax reform package that was signed into law gives deductions to businesses that purchase qualifying equipment, like digital signage and billboards. Its purpose is to motivate American businesses to invest in equipment that grows their businesses, improves their bottom lines, and helps to stimulate the economy as a result. This legislation can provide potential tax savings for your business. 

Section 179 also allows for 100% Bonus Depreciation that lets businesses deduct the full cost of equipment above the standard depreciation cap, as long as it is acquired and placed in service before the end of the tax year. For property acquired and placed in service on or after January 19, 2025, businesses can permanently deduct 100% of the cost in the first year. 

For property purchased before January 19, 2025, the previous phase-down schedule still applies: 

• 2023: 80% 

• 2024:  60% 

• 2025: 40% 

• 2026: 20% 

• 2027 and beyond: 0% 

Here’s how that translates to savings for your company. Let’s say you invest $50,000 in new digital signage in 2025. Your total first year deduction is the full amount – $50,000. Assuming a 32% tax bracket, this would give you a cash savings of $16,000 and effectively lower the cost of your investment to $34,000. 

To learn more about how to put Section 179 deductions to work for your business, download our free guide.