If your organization has been considering upgrades to servers, security systems, networking hardware, or other capital equipment — recent changes to the U.S. tax code have opened a unique window of opportunity.
Businesses can now write off technology purchases more aggressively than ever before, thanks to two powerful incentives:
- 100% Bonus Depreciation
- Enhanced Section 179 Expensing
These incentives are designed to stimulate business investment while lowering taxable income — meaning you can modernize your IT and improve cash flow at the same time.
100% Bonus Depreciation
Deduct 100% of qualifying equipment costs in the year purchased.
Under the updated tax code:
- Businesses can deduct 100% of the cost of eligible property the year it is placed in service.
- Applies to hardware and infrastructure upgrades.
- There is no cap on the total deduction amount.
Eligible assets include:
- IT infrastructure (servers, switches, firewalls)
- Office equipment and furniture
- Software and cloud-based tools
- Vehicles and machinery
This provision allows for immediate expensing, improving cash flow and reducing taxable income.
Enhanced Section 179 Expensing
Increased deduction limits for capital investments.
Section 179 has been expanded to support more aggressive investment:
- Deduct up to $2.5 million in qualifying purchases
- Phase-out begins at $4 million in total equipment purchases
- Applies to a wide range of business assets, including:
- Computers, laptops, and mobile devices
- Security systems, networking gear, and IT equipment
- Business vehicles and office improvements
Unlike bonus depreciation, Section 179 can be used for partial-year purchases, offering more flexibility for smaller or staged IT projects.
Key Considerations
To take advantage of these incentives:
- Consult your tax advisor to optimize your strategy
- Equipment must be purchased and placed in service by December 31, 2025
- Proper documentation and classification are essential
- Combining Section 179 and Bonus Depreciation may maximize tax savings
Ready to Upgrade Your IT?
If your infrastructure is approaching end of life, is lacking security features, or is limiting performance — now is the ideal time to upgrade while capturing significant tax advantages.
DDSystems helps businesses:
- Evaluate current IT infrastructure
- Prioritize upgrades and replacements
- Procure and install hardware and cloud solutions
- Align investments with tax-optimization strategies
Invest wisely. Reduce tax liability. Strengthen your IT environment.
We’ll help you plan your upgrades and make the most of available tax incentives.
