Section 179 & Bonus Depreciation for Equipment Purchases [2025]

How the One Big Beautiful Bill Act Applies to Forklift Purchases in 2025

If you own a warehouse or regularly move large amounts of material, the One Big Beautiful Bill Act (OBBBA) was signed into law in July 2025, bringing huge benefits your way. 

The bill increases Section 179 limits and restores 100% bonus depreciation. These changes make 2025 one of the most tax-friendly years ever to invest in new forklifts by brands like Hyster, Yale, Drexel, Bendi, Mariotti, and Combilift. 

Section 179 Deduction

Here’s what the new law means for your business: 

• Deduction limit: Now up to $2,500,000 for qualifying equipment purchases or financing*. 
• Phase-out threshold: Begins at $4,000,000 in total purchases, fully phasing out at $6,500,000*. 
• Applies to new or new-to-your-business qualifying equipment, including high-capacity, electric, and very narrow aisle forklifts, as long as they’re purchased after December 31, 2024, used more than 50% for business purposes, and placed in service before December 31, 2025. 
• Ideal for small and mid-sized businesses that want big first-year deductions on specific machines. 

* Section 179 applies to property you own. True-tax leases typically do not qualify. Ask your tax advisor about eligibility if you’re financing or leasing equipment. Keep in mind that numbers may adjust for inflation in future years and that state differences may affect your eligibility for Section 179 and bonus depreciation. Further IRS guidance may also apply. Consult your tax advisor for more information.

100% Bonus Depreciation

Before the OBBBA, bonus depreciation was dropping to 40% for 2025. Not anymore. Now, for qualifying new or new-to-your-business equipment that is acquired and placed into service on or after January 20, 2025 and before December 31, 2025: 

• You can deduct 100% of the equipment cost in the year it’s placed in service. 
• There’s no dollar cap, which is perfect for forklift purchases or fleet expansions. 
• Available to businesses of all sizes. 
• Applied after Section 179, covering any remaining cost not already deducted. 

How Section 179 and Bonus Depreciation Work Together

Let’s say you make a large purchase of new material handling equipment for your business in 2025: 

1. Apply Section 179 first, deducting up to $2.5 million across all qualifying equipment. 
2. Then apply 100% bonus depreciation on the remaining cost. 

That means that eligible businesses can write off the full purchase price in the first year the machines are put into service. 

Example: Hyster Cushion Tire Forklift Purchase in 2025

• Section 179 Deduction: $40,000 
• Bonus Depreciation (100%): $0 (because Section 179 already covers the full amount) 
• Total First-Year Deduction: $40,000 
• Estimated Tax Savings at a 21% rate: $8,400 

Your after-tax cost comes to $31,600. That means that you save over eight grand just for buying a new forklift and putting it to work before year-end.  

If you want to replicate this example with your actual business numbers, check out our Section 179 Savings Calculator. Please keep in mind that Section 179 deduction cannot exceed your taxable business income from active conduct of trade or business (unless you carryover). Please also conform to your specific state tax laws. If you have questions about this, we suggest talking to your tax advisor. 

Why This Matters for Equipment Owners

• First-year write-offs free up cash to cover insurance, materials, or additional business purposes. 
• You can upgrade your fleet without waiting years to see the tax benefit. 
• New-to-your-business forklifts qualify, giving you flexible purchasing options. 
• Large warehouses and businesses benefit from no bonus depreciation cap**. 

**The removal of a bonus depreciation cap applies to federal taxes. Your specific equipment type or business situation may have qualifiers or timing issues related to bonus depreciation. Please contact your tax advisor to see if you qualify for 100% bonus depreciation. 

Don’t Miss the Window

With Section 179 and 100% bonus depreciation working together, the OBBBA gives business owners one of the best chances in years to upgrade their fleet and reduce taxable income. These enhanced deductions only apply to equipment acquired after December 31, 2024 and placed in service before December 31, 2025. 

So, if you’re planning to add a new Hyster or Yale forklift to your lineup this year, talk with your tax advisor and with our team at Berry Material Handling to plan your purchase strategically. 

*Berry Material Handling is not a tax advisor. The information provided by Berry Material Handling, its employees, or its representatives is for general informational purposes only. It is not intended to constitute tax, financial, or legal advice. Berry Material Handling does not provide tax advisory services, and any information, documents, or discussions should not be construed as such. Please consult your financial advisor or tax attorney for more information.