BONUS DEPRECIATION & SECTION 179

YOUR GUIDE TO YEAR-END
TAX SAVINGS ON CAT EQUIPMENT.

Putting new, used or even rebuilt Cat® equipment to work before year-end could mean significant tax savings for your business. Thanks to Section 179 and Bonus Depreciation, qualifying equipment purchased and put into service by the end of year may be eligible for a 100% deduction of the purchase price against your taxable income. That’s not just smart investing—it’s strategic planning. Whether you’re upgrading, expanding or bringing aged equipment back to like new condition through the Cat Certified Rebuild Program, now is your opportunity to reduce your tax liability while boosting productivity.

SECTION 179 UPDATES

IMMEDIATE FULL DEDUCTION

Deduct 100% of the purchase price of construction equipment in the first year, instead of depreciating the equipment over 5-7 years.*

+ For example, a $250,000 excavator can be fully deducted from taxable income, saving tens of thousands in taxes.

IMPROVED CASH FLOW

These tax savings can be used to help manage your bottom line and be helpful when trying to manage cash flow more tightly.

+ Pay down equipment loans faster, invest in more projects, hire additional workers, etc.

APPLIES TO NEW & USED EQUIPMENT

The accelerated depreciation applies to both new and used construction equipment, as long as it’s “new-to-you.” This gives buyers more flexibility in choosing cost-effective options.

GAIN COMPETITIVE ADVANTAGE

Contractors who upgrade their fleet can take on larger or more complex jobs, increasing revenue potential.

+ Newer equipment is often more fuel-efficient and reliable, reducing downtime and maintenance costs

MORE FLEXIBILITY

Buyers can combine Section 179 expensing with accelerated depreciation for even more flexibility, especially if they hit the Section 179 cap.
 

Restrictions may apply. Caterpillar Financial does not provide tax or legal advice, and the information provided on this page does not, and is not intended to, constitute legal or tax advice. Instead, all information and content provided herein is for general informational purposes only. Customers should always consult their legal, tax or accounting advisor and professionals before making any decisions.