If you’re planning to invest in material handling equipment, now is the time to act. With the passage of the One Big Beautiful Bill in July 2025, businesses can take advantage of expanded Section 179 deductions and a permanent 100% bonus depreciation. These updated tax provisions make purchasing used forklifts and attachments an even smarter financial decision.
Below, we explain how the new rules work and how they apply to your used equipment purchases.
Section 179 Deduction Now Doubled
The Section 179 deduction allows businesses to deduct the full purchase price of qualifying equipment in the year it is placed in service, rather than depreciating it over time. Thanks to the One Big Beautiful Bill, the deduction limit has doubled for 2025.
- Businesses can now deduct up to $2.5 million in qualifying equipment purchases.
- The deduction begins to phase out once total equipment purchases exceed $4 million, and phases out entirely at $6.5 million.
- Used equipment, including forklifts and attachments, qualifies for this deduction as long as it is used more than 50% for business purposes and placed in service before the end of the tax year.
This expansion gives small and mid-sized businesses more flexibility to invest in the equipment they need while reducing their taxable income.
Bonus Depreciation: Now Permanent at 100%
In addition to Section 179, the new legislation reinstates 100% bonus depreciation as a permanent tax incentive. Businesses can now fully depreciate qualifying new or used equipment in the year it is placed in service.
This is especially useful for purchases that exceed the Section 179 deduction limit. Once the $2.5 million cap is reached, bonus depreciation applies to the remaining qualifying costs. There is no dollar limit or phase-out threshold for bonus depreciation.
Summary of 2025 Equipment Tax Deductions
| Tax Incentive | 2025 Limit | Eligible Equipment | Key Requirements |
|---|---|---|---|
| Section 179 Deduction | $2,500,000 | New and used forklifts, attachments, and other business equipment | Placed in service by December 31, 2025; phase-out begins at $4 million; fully phased out at $6.5 million |
| Bonus Depreciation | 100% (no cap) | New and used qualifying equipment | Permanent provision; applies after January 19, 2025; no phase-out limit |
Why Used Equipment Makes Financial Sense
Beyond the tax benefits, buying used equipment offers practical savings and advantages:
- Lower acquisition cost: Used forklifts often cost 30–50% less than new models.
- Faster return on investment: Reduced upfront cost means you recoup your investment sooner.
- More equipment for your budget: Buying used allows you to expand your fleet without overspending.
- Easier maintenance: Many used models have more affordable replacement parts and reduced service costs.
- Operator familiarity: Employees often already know how to operate legacy equipment, which cuts down on training time.
Dependable Equipment from The Forklift Pro
At The Forklift Pro, we specialize in high-quality used material handling equipment. Our team inspects and services each forklift before it enters our inventory, ensuring you’re investing in reliable equipment that’s ready to work.
Whether you’re expanding your fleet or replacing older models, we’ll help you find the right equipment to meet your needs—and make the most of these expanded tax deductions.
Make Your Purchase Before Year-End
To take advantage of Section 179 and bonus depreciation for 2025, your equipment must be purchased and placed in service by December 31, 2025.
If you’re considering adding to your fleet, now is the time to act. The combination of upfront cost savings and powerful tax incentives makes buying used forklifts a strategic decision for your business.
Contact The Forklift Pro today to explore our inventory and lock in your year-end tax savings.