THE QUALITY YOU EXPECT.
THE SERVICE YOU DESERVE.
THE QUALITY YOU EXPECT.
THE SERVICE YOU DESERVE.
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 168(k) features expanded bonus depreciation rules that strongly benefit construction equipment owners.
+ 100% First-Year Write-Off – Deduct the full purchase price of qualifying equipment in the year you place it in service.
+ New & Used Equipment Qualifies – Applies to equipment that is new to your business.
+ Immediate Cash Flow Advantage – Lower taxable income today and keep more money in your business.
+ No Dollar Cap – Unlike Section 179, there is no maximum deduction limit.
+ Purchase or finance new or used equipment, place it in service during the year and deduct 100% of the cost against taxable income.
+ Example: Buy a $500,000 excavator and instead of depreciating it over 5-7 years, you deduct the full $500,000 in the first year.
+ Used & Reconditioned Machines Purchased from Dealers – Eligible if ‘new to your business.’
+ Dealer-Rebuilt Equipment – The entire purchase price (including parts & labor) qualifies for bonus depreciation.
+ Rebuilding Equipment You Already Own:
> the original purchase price does not qualify again.
> capitalized rebuild costs (e.g., engine, transmission, undercarriage) are treated as new property placed in service in 2025 and can qualify for 100% bonus depreciation.
> Example: A Cat Dozer purchased in 2018, $200,000 rebuild in 2025 (engine + transmission). The $200,000 is eligible for 100% bonus depreciation, but the 2018 purchase price is not.
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.
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.
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.
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
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.
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Discover all of our current deals and offers on new equipment!
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