How Section 179 & Bonus Depreciation Can Save You Thousands on Packaging Equipment in 2025
- Candace Watkins
- Il y a 16 heures
- 3 minutes de lecture
If you're exploring ways to upgrade your packaging line and reduce your tax bill, now’s the perfect time. Thanks to the return of 100% bonus depreciation and the power of Section 179, bbusinesses can deduct the entire cost of qualifying packaging equipment, including all Polypack machinery, in the same year they place it in service.
What Is Section 179?
Section 179 is a tax deduction that lets businesses write off the full purchase price of qualifying equipment in the year it’s put into use. It’s designed to encourage companies to invest in the tools they need to grow, without waiting years to recover the cost through depreciation.
What’s New in 2025?
Starting January 20, 2025, the IRS has restored 100% bonus depreciation, permanently. That means:
You can deduct the full cost of a Polypack machine in the year it’s installed.
Previously, this deduction would have dropped to just 40% in 2025.
Now, your savings are much bigger, improving your cash flow immediately.
Unlike Section 179, bonus depreciation has no income limit and can be used even if it creates a loss—making it a powerful tool for companies of any size.
Example:
Buy a $250,000 shrink bundler → Deduct the full $250,000 from your 2025 taxes → Save up to $75,000 (assuming 30% tax rate).
What Qualifies Under Section 179?
Polypack packaging machinery qualifies, including:
Section 179 deductions are limited by your taxable income and capped at $1.25 million in 2025. However, any unused deduction can roll forward to future years.
Why Businesses Should Act Now
Equipment Cost | Immediate Deduction | Estimated Tax Savings (30% Rate) |
$100,000 | $100,000 | $30,000 |
$250,000 | $250,000 | $75,000 |
$500,000 | $500,000 | $150,000 |
You can also use the free Section 179 calculator to estimate how much your business could save.
Section 179 vs. Bonus Depreciation: What’s the Difference?
Both Section 179 and bonus depreciation allow businesses to deduct the cost of packaging machinery—but they work a little differently, and you can often use them together to maximize savings.
Here’s a simple breakdown:
Feature | Section 179 | Bonus Depreciation |
Annual Limit | Yes – $1.25 million in 2025 | No limit – deduct millions if needed |
Income Limit | Yes – can’t exceed your taxable income | No – can create a net loss |
Applies to | New and used equipment | New and used equipment |
Partial Use | You can choose what to apply it to | Must apply to all items in the same category |
Placed in Service | Must be installed in 2025 | Must be installed on or after Jan 20, 2025 |
Who Benefits Most | Small to mid-size businesses | Mid-size to large businesses |
How They Work Together
If a customer buys a $500,000 Polypack machine:
They might apply Section 179 to deduct $250,000 (based on income).
Then use bonus depreciation to deduct the remaining $250,000.
Result: 100% of the equipment is written off in 2025.
Why It Pays to Plan Now
This two-part tax strategy helps both small and large businesses:
Small businesses can take advantage of Section 179 if they’re profitable.
Larger businesses (or those buying multiple machines) can use bonus depreciation to write off any remaining cost—even if it puts them in a net loss.
Polypack equipment qualifies for both deductions, making 2025 an ideal year to invest.
Lead times, customization, and shipping can take months, so it's smart to start now.
Pourquoi choisir Polypack ?
Polypack machines are:
Made in the USA
Built for high uptime and low maintenance
Used across food, beverage, pharma, and personal care industries
We work closely with customers to plan installations around production schedules, so you’re ready to take full advantage of Section 179 and 100% bonus depreciation.
Ready to Get Started?
Don’t wait until year-end. Start the process now to secure your equipment and lock in the full tax deduction.
Contact Polypack to get a custom quote and speak with a packaging expert.