What is Section 179 Limit for 2025
OBBBA increased the limit for 2025
The One Big Beautiful Bill Act made bonus depreciation permanent at the 100% level starting for assets placed in service after January 19, 2025.
However, it also increased the Section 179 maximum deduction limit to $2.5 million effective for years beginning after December 31, 2024, and the phase out of the limit now starts at $4 million.
This effectively means for most farmers that they can fully deduct all equipment purchases during the year unless they spend more than $2.5 million.
Even if they spend more than that amount, 100% bonus depreciation will kick in to deduct the remainder.
