Don’t pay more taxes than necessary. Section 179, a piece of legislation aimed at assisting small to medium-sized businesses, is one of the best ways to limit tax liability while reinvesting in your shop. Here’s how it works for screen printers and how your business can take advantage of it this year.
WHAT IS SECTION 179?
Section 179 allows businesses to deduct the full purchase price of qualifying equipment or software bought or financed during the tax year. Instead of spreading deductions across several years through depreciation, you can write off the entire amount in the year of purchase. That means if you invest in shop upgrades now, you can immediately reduce your taxable income.
In the past, businesses that bought qualified equipment could only write off a portion each year through depreciation. Section179.org explains it like this: if your shop spends $50,000 on equipment, you would normally write off $10,000 per year over five years. With Section 179, you can deduct the full $50,000 in the year you bought it. This tax code was created to encourage business owners to invest back into themselves — which is exactly what screen printers do when they upgrade their shops.
Photo by Symmetree.
WHAT QUALIFIES?
Section 179 covers most tangible business equipment, including screen printing gear. That means your shop can deduct purchases like a new press, exposure unit, flash dryer, conveyor dryer, or washout booth. The rule is that equipment must be new to you. Whether you buy it brand new or secondhand, if it’s the first time your shop is putting it into service, it counts.
Some exceptions apply, such as gifts or inherited items, which cannot be deducted. Always confirm with your tax professional before filing.
2025 NUMBERS YOU NEED TO KNOW
- Deduction limit: $1,220,000
- Spending cap: $4,270,000 (above this, the deduction begins to phase out)
- Deadline: Equipment must be purchased, invoiced, and placed into service by December 31, 2025
Here’s a quick example: Say you purchase a RileyCure 248 Conveyor Dryer. If you’re in a 35% tax bracket, the deduction can save you thousands, effectively lowering the real cost of your investment. Go bigger with a RileyFlash Quartz Dryer, and you’ll not only increase efficiency but also put your money back into your shop instead of sending it to the IRS.
THE RULES
Keep these guidelines in mind:
- Equipment must be purchased, invoiced, and in use by December 31, 2025
- Applies to financed and leased equipment as well as upfront purchases
- Used equipment qualifies as long as it’s new to your shop
With current supply and shipping delays, don’t wait until the last minute. Order early to ensure your equipment arrives and is operational before year-end.
RELATED: WHICH SCREEN PRINTING KIT IS RIGHT FOR YOUR SHOP?
The bottom line: Section 179 is designed to reward reinvestment. Plan your purchases strategically, work with your accountant, and put your money into tools that grow your screen printing business instead of giving it up in taxes.
Disclaimer: This information is provided for general informational purposes only and does not constitute legal or tax advice. You should always consult with a qualified and reputable accountant or financial advisor regarding your specific financial or tax situation.