Capitalize on the IRS’s Section 179 deduction. At XBS Digital, we understand that every dollar matters. That’s why we’re helping businesses across Kentucky—from Louisville to Paducah and areas inbetween. This powerful tax provision enables you to write off the full purchase price of eligible technology and equipment in the year you acquire it, freeing up cash flow for strategic growth.
What Is Section 179—And Why Should Your Business Care?
Section 179 of the U.S. Internal Revenue Code allows businesses to deduct the complete cost of qualifying technology and equipment immediately, rather than depreciating it over several years. This means significant upfront savings no matter if you’re investing in printers, servers, networking infrastructure, or software.
What’s the 2025 Section 179 Landscape Look Like?
Thanks to tax law updates under the One Big Beautiful Bill (OBBBA), Section 179 is more generous than ever:
Maximum Deduction: Kentucky businesses can deduct up to $2.5 million in qualifying purchases for the 2025 tax year .
Phase-Out Threshold: This deduction begins to phase out once total eligible equipment spending exceeds $4 million, and is entirely phased out when purchases reach $6.5 million U.S. BankBipartisan Policy Center.
Business-Use Requirement: Items must be used more than 50% for business during the year placed in service .
Industry Evolution: The OBBBA made several enhancements to business expensing laws starting in 2025, further enabling full deduction for eligible assets.
What Qualifies Under Section 179?
A broad range of office and business technologies are eligible, including:
Computers, servers, and telecommunications hardware
Software—especially off-the-shelf, business-use applications
Printers, copiers, and multifunction devices
Networking systems and enterprise technology tools
Office-specific equipment such as projectors and security systems allied.techaccountants.sva.comimpactmybiz.com
Essentially, if it’s a tangible business-use asset and used predominantly for work, it likely qualifies!
Benefits in a Nutshell
| Benefit | What It Means for Kentucky Businesses |
|---|---|
| Immediate Deduction | Slash tax liability in the year of purchase rather than over years |
| Improved Cash Flow | Maximize capital for operations, hiring, or reinvestment |
| Strategic Advantage | Faster access to upgraded tech supports productivity and innovation |
Example in Action
If you invest $1 million in new servers and networking gear in 2025:
You can write off the entire $1 million via Section 179 (assuming business-use criteria are met).
This could dramatically reduce taxable income, freeing up substantial funds in that same year for reinvestment.
Take Your Kentucky Business to the Next Level
Whether you’re upgrading your IT infrastructure, expanding your digital toolset, or modernizing your office capabilities, Section 179 is a powerful opportunity to reduce costs and stay nimble.
Contact XBS Digital today to explore exactly how we can help your business capitalize on Section 179 and turn your technology investments into strategic advantages.