A surprisingly generous $200,000 tax break (phase-out begins at $4M) for tech you buy before December 31.

• The hidden perk: IRS Section 179 lets many small and midsized businesses deduct the entire cost of qualifying new IT gear and certain “off-the-shelf” software this tax year instead of depreciating it over time.
• The catch: Your purchases must be bought and placed in service by 11:59pm on December 31.
• The hurry-up: End-of-year supply chains can be… moody. Ordering sooner means fewer “out of stock” nightmares.

Think of Section 179 as the IRS saying, “Go ahead—upgrade your tech and we’ll let you expense it now.” If you purchase eligible hardware (servers, laptops, networking gear, firewalls, VoIP phones, etc.) and some commercial software, you can generally deduct the full purchase price this year. The goal is to encourage reinvestment—and it’s no small potatoes: deductions can go up to $2,000,000 this tax year (phase-out begins at $4M).

Nerdy but useful: Here’s a complete guide with examples you can review and share with your CPA, here.

December arrives, everyone orders at once, and suddenly the server you want is back-ordered until the Cubs’ next pennant run. To use Section 179 this year, the tech must not only be purchased—it has to be in service by December 31. Translation: the earlier we spec, order, receive, and install, the better.

Think ahead to 2026 (yes, really)

If you know you’ll need:

• Healthcare: Secure endpoints for e-prescribing, HIPAA-ready storage, or redundant firewalls for clinics.
• Education: Teacher laptops, lab desktops, or Wi-Fi upgrades for testing days.
• Insurance: Encrypted laptops for field agents, compliant backup appliances, or MFA tokens.
• Government & Non-profit: Rugged devices, identity management, or network segmentation for grants and audits.

…then buying in 2025 could let you expense it in 2025 under Section 179 (again, if eligible)—and enter 2026 ready to roll.

To capture the deduction, qualifying gear and software must be purchased and live by December 31. Supply constraints are real. Let’s lock in models, lead times, and installation windows now so you’re not squeezing a server rack into New Year’s Eve.

Always confirm with your CPA—every business is different, and tax rules have details.

We’re a Chicago-based managed services team serving healthcare, education, insurance, government, and non-profits. We plan for Section 179 all year so our clients don’t have to scramble. We’ll help you:

1. Right-size the shopping list (no overbuying, no under-speccing).
2. Source quickly (we check multiple distributors to beat lead times).
3. Install & document (so “placed in service” isn’t a question mark).
4. Hand you a tidy packet for your CPA (invoices, serials, go-live dates).

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Disclaimer: This content is for general information and edutainment. Section 179 has eligibility limits, phase-outs, and other rules. Please confirm your specific situation with a qualified tax professional.