tax planning

Section 179 and Bonus Depreciation for Contractors: The Equipment Expensing Rules That Affect Every Capital Decision

Construction companies buy expensive equipment — trucks, excavators, cranes, tools. Section 179 and bonus depreciation let contractors deduct the cost in the year of purchase rather than spreading it over years. The rules affect every major capital decision. Understanding the options, limits, and interaction with regular depreciation lets contractors structure equipment purchases tax-efficiently.