Section 179 & Bonus Depreciation for Equipment Purchases [2025]

How the One Big Beautiful Bill Act Applies to Heavy Equipment Purchases in 2025

If you own a construction or road building business, the One Big Beautiful Bill Act (OBBBA) was signed into law in July 2025, bringing huge benefits your way.

The bill increases Section 179 limits and restores 100% bonus depreciation. These changes make 2025 one of the most tax-friendly years ever to invest in new Komatsu equipment.

Section 179 Deduction

Here’s what the new law means for your business: 

• Deduction limit: Now up to $2,500,000 for qualifying equipment purchases or financing*. 
• Phase-out threshold: Begins at $4,000,000 in total purchases, fully phasing out at $6,500,000*. 
• Applies to new or new-to-your-business qualifying equipment, including Komatsu dozers, excavators, and wheel loaders, as long as they’re used more than 50% for business purposes and placed in service before December 31, 2025. 
• Ideal for small and mid-sized businesses that want big first-year deductions on specific machines. 

*All numbers listed here apply to the 2025 tax year and reflect the changes enacted by the One Big Beautiful Bill Act. Section 179 applies to property you own. True-tax leases typically do not qualify. Ask your tax advisor about eligibility if you’re financing or leasing equipment. Keep in mind that numbers may adjust for inflation in future years and that state differences may affect your eligibility for Section 179 and bonus depreciation. Further IRS guidance may also apply. Consult your tax advisor for more information. 

100% Bonus Depreciation

Before the OBBBA, bonus depreciation was dropping to 40% for 2025. Not anymore. Now, for new or used qualifying equipment that is acquired after December 31, 2024 and placed into service on or after January 20, 2025 and before December 31, 2025:

• You can deduct 100% of the equipment cost in the year it’s placed in service. 
• There’s no dollar cap, which is perfect for large equipment purchases or fleet expansions. 
• Available to businesses of all sizes. 
• Applied after Section 179, covering any remaining cost not already deducted. 

How Section 179 and Bonus Depreciation Work Together

Let’s say you make a large purchase of new earthmoving equipment for your business in 2025: 

1. Apply Section 179 first, deducting up to $2.5 million across all qualifying equipment. 
2. Then apply 100% bonus depreciation on the remaining cost. 

That means that eligible businesses can write off the full purchase price in the first year the machines are put into service. 

Example: Komatsu Dozer Purchase in 2025

• Section 179 Deduction: $250,000 
• Bonus Depreciation (100%): $0 (because Section 179 already covers the full amount) 
• Total First-Year Deduction: $250,000 
• Estimated Tax Savings at a 21% rate: $52,500 

Your after-tax cost comes to $197,500. That means that you save over fifty-two grand just for buying new Komatsu equipment and putting it to work before year-end.  

If you want to replicate this example with your actual business numbers, check out our Section 179 Savings Calculator. Please keep in mind that Section 179 deduction cannot exceed your taxable business income from active conduct of trade or business (unless you carryover). Please also conform to your specific state tax laws. If you have questions about this, we suggest talking to your tax advisor. 

Why This Matters for Equipment Owners

• First-year write-offs free up cash to cover insurance, materials, or additional business purposes. 
• You can upgrade your fleet without waiting years to see the tax benefit. 
• New-to-your-business Komatsu equipment qualifies, giving you flexible purchasing options. 
• Large contractors and road building businesses benefit from no bonus depreciation cap**. 

**The removal of a bonus depreciation cap applies to federal taxes. Your specific equipment type or business situation may have qualifiers or timing issues related to bonus depreciation. Please contact your tax advisor to see if you qualify for 100% bonus depreciation. 

Don’t Miss the Window

With Section 179 and 100% bonus depreciation working together, the OBBBA gives business owners one of the best chances in years to upgrade their fleet and reduce taxable income. These enhanced deductions only apply to equipment acquired after December 31, 2024 and placed in service before December 31, 2025. 

So, if you’re planning to add a new Komatsu dozer or excavator to your lineup this year, talk with your tax advisor and with our team at Berry Tractor to plan your purchase strategically. 

*Berry Tractor is not a tax advisor. The information provided by Berry Tractor, its employees, or its representatives is for general informational purposes only. It is not intended to constitute tax, financial, or legal advice. Berry Tractor does not provide tax advisory services, and any information, documents, or discussions should not be construed as such. Please consult your financial advisor or tax attorney for more information. 

Why Contractor George Jueneman has Stayed with Berry Tractor for Over 30 Years

Over the past 48 years of owning his own business, George Jueneman has owned not one, not two, but 19 Komatsu dozers. 

A native of Hanover, Kansas, George does any job that has to do with farming. “I’ve had a lot of customers over the years,” George said. “They would put me in a pickup and drive around, saying, ‘George, I want to farm everything I can farm.’ And then they’d leave, and maybe a month later, they’d show up again. A lot of those jobs were one, two, three-month jobs. I was to clean the whole farm: terrace it, waterway it, whatever it needed.” 

George isn’t your average operator. He can get exceptionally accurate results without using a GPS. “I can get it within a few tenths by just looking at it. Anybody can run a dozer, but to know what you’re doing with it, that takes some time. You’ve got to have an eye for it.” 

Known to his customers as DOZRMAN, George has operated just about every brand of dozer on the market. He and his wife, Kate, got into the cab of their first Komatsu in 1991 after frustrations with another machine. 

“I worked hard all year, and the back end of that dozer went out. The dead axles, the sprockets…everything was shot. I spent all this money, and I don’t think I ran it two days before the bearing went out again. That dozer took all the money I made that year. I went home, and I told Kate, ‘I’m going to do one of two things. I’m either going to quit, or I’m going to buy a better dozer.’ That’s when we headed to Wichita and got a Komatsu.” 

On that first trip, George and Kate bought a Komatsu D68E-1 dozer directly from Fred Berry, co-founder of Berry Tractor. 

“If it wasn’t for Fred, I probably wouldn’t be in Komatsu,” George said. “He’s a good guy. He entertained me and Kate the whole day, and he made us feel like he’d known us for years. On the way home, I told Kate, ‘I think that Fred is an honest man. We’re going to get a Komatsu dozer.’ We’ve been with Berry Tractor ever since.” 

Over the years, Berry Tractor’s Parts, Service, and Sales teams have stayed with the couple. Kate shared that working with Berry Tractor has made their lives much easier. 

“When we had trouble with other dozers, George would call me three or four times a day, every time something happened,” she said. “You know, ‘This didn’t work’ or ‘That didn’t work.’ Life can be pretty tense when you have that going on. It’s been much better with Komatsu, and Berry has always treated us good when we go down there.” 

George shared that buying new from Berry Tractor has also saved him a lot of money and downtime. 

“By keeping them brand new and under warranty, I’ve made more money, we saved more money, and Kate was happier because I didn’t come home in a bad mood,” George said. “it’s not the parts that will cost you; it’s the downtime. If I’m going to run it 2200 hours a year, it can’t be sitting there for a couple weeks waiting for someone to get the parts to fix it.” 

Salesman Jake Zeka said that this approach has given George a reputation with other Berry Tractor customers. “George’s dozers have become so well-known that we’ve started getting calls that go like ‘Hey, when is George trading?’ Everybody wants George’s trade-ins.” 

If he could go back, George would choose Berry Tractor and Komatsu equipment every time. 

“Let’s say you come to me, and you say, ‘Which dozer do you think I ought to get?’. I’d say to try Komatsu. They stand up—I’ve proved that over the years! And I’d go with Berry Tractor. Whatever Berry said they would do, they did. I look back, and I don’t have any complaints.” 

Interested in Komatsu equipment? We’ve got you covered! Find you Berry Tractor sales rep today. 

Honoring Our Heritage

As the founding location for Berry Companies back in 1957, our Berry Tractor Wichita branch embraces its deep ties to the community with a 10-foot replica of the iconic Keeper of the Plains. “Dreams of Wichita” was the first sculpture that Meredith Radke-Gannon painted for the Keepers on Parade community art project, and she used it to highlight symbols of local tribes, including Native American houses and cultural representations of the Wichita flag.

To learn more about this project, read more on the Wichita Chamber website.

To view other art and statues by Meredith Radke-Gannon, visit her website.