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Why Now is the Time to Invest in Technology

Maximize Your 2025 Tax Savings with Section 179 and Bonus Depreciation

As we approach the end of the year, strategic leaders are making one critical decision — how to allocate remaining 2025 budgets in a way that delivers both operational value and financial advantage. For IT Managers, CIOs, CFOs, and CEOs, this is the perfect time to consider upgrading your technology infrastructure, replacing aging equipment, or investing in new digital tools that drive business efficiency — all while taking advantage of powerful IRS tax incentives like Section 179 expensing and bonus depreciation.

The 2025 Update: 100% Bonus Depreciation is Back

With recent changes under The One Big Beautiful Bill Act, businesses can once again take 100% bonus depreciation for qualified assets acquired and placed in service on or after January 20, 2025.
Here’s what that means for your organization:

  • 100% deduction for property placed in service on or after January 20, 2025
  • 40% deduction for assets placed in service between January 1–19, 2025 (under the previous TCJA schedule)

This change provides greater certainty and incentive for capital investments. Instead of depreciating assets over several years, your company can deduct the entire cost in year one, freeing up cash for reinvestment, growth, or other strategic priorities.

What Qualifies for Bonus Depreciation and Section 179

If you’re planning to refresh your IT environment, chances are your purchases qualify. Eligible “qualified property” includes:

  • Tangible personal property with a recovery period of 20 years or less
  • Servers, networking hardware, and computer equipment
  • Software (off-the-shelf or certain custom-developed applications)
  • Qualified improvement property for facilities
  • Certain film, TV, and theatrical productions

Essentially, most business-critical IT assets fall squarely into this category.

Stacking the Benefits: How Section 179 and Bonus Depreciation Work Together

Section 179 and bonus depreciation are two distinct—but complementary—tax tools. Businesses spending less than $6.5 million on equipment in 2025 can fully deduct the cost of qualifying assets under Section 179. Once you exceed that cap, bonus depreciation can be applied to the remaining qualified purchases — with the new 100% deduction maximizing your savings potential.

In other words:

  • Apply Section 179 first to your qualifying equipment purchases.
  • Then use bonus depreciation for anything above your Section 179 limit.

This one-two punch can dramatically reduce your 2025 taxable income and increase your available cash flow.

Extra Incentive: Year-End Manufacturer Discounts

In addition to tax advantages, many technology manufacturers and distributors are offering special year-end discounts and financing incentives on hardware and software. These limited-time offers can further increase your ROI and help you stretch your IT budget even farther.
Combining these discounts with Section 179 and bonus depreciation deductions can create a rare triple advantage — lower upfront costs, reduced tax liability, and stronger long-term performance.

Bonus: Year-End Equipment Investment Checklist

Before the calendar turns, make sure you:

✅ Review your capital budget — Determine remaining 2025 funds available for IT or equipment investments.
✅ Consult your tax advisor — Confirm how Section 179 and bonus depreciation apply to your specific purchases.
✅ Get quotes early — Lead times on hardware and networking equipment can vary, so start now.
✅ Verify “placed in service” dates — Equipment must be operational before year-end to qualify for 2025 deductions.
✅ Leverage vendor incentives — Ask your technology partner about available manufacturer discounts or extended financing.
✅ Document everything — Keep detailed purchase and installation records for IRS compliance.

A Smart Time to Modernize

Whether you’re refreshing servers, investing in new cybersecurity tools, upgrading collaboration platforms, or expanding your cloud infrastructure, these incentives make 2025 the year to act. With technology lifecycles shrinking and cyber risks growing, reinvesting in your IT stack not only strengthens your security and performance — it’s also a savvy financial move.

The Bottom Line

Don’t wait until the final weeks of December to start planning. Work with your finance and IT teams now to evaluate equipment needs, confirm eligibility, and schedule purchases so your new assets are placed in service before the end of the year.

Secure Data Technologies can help you assess your current infrastructure, identify high-impact upgrades, and ensure your technology investments align with both your operational goals and tax strategy.

Contact us today to explore qualifying IT equipment purchases before year-end, and make your 2025 budget work smarter for your business.