Unlock Growth & Tax Savings: How Equipment Financing + Section 179 Can Be a Game-Changer

Why Financing Equipment — Especially with Section 179 — Might Be the Most Strategic Move You Make This Year
As year-end approaches, savvy business owners are seeking ways to push growth while saving on their tax bill. With equipment financing and the Section 179 deduction, you can do both!

At Truecore Capital, we help business owners secure the financing they need to grow, scale, and remain competitive in today’s market – all while maximizing year-end tax advantages.

Understanding Section 179 and Why It’s So Powerful
Section 179 of the U.S. tax code allows businesses to deduct the full purchase price of qualifying equipment of property in the same tax year it’s put into service – rather than spreading depreciation over multiple years. (IRS Publication 946)

Simply put:
If you finance $100,000 worth of qualifying equipment, you are able to deduct the entire $100,000 from your taxable income this year (assuming you are under the spending cap and meet eligibility).

Here’s why it’s such a big deal:

• – You can finance equipment and still deduct the full amount: the IRS doesn’t require you to pay cash. As long as the equipment is placed into service before year-end, you can claim the full deduction. (Section179.org)
• – Deduction limits increased in 2025: the deduction cap has been significantly raised, as businesses are now able to deduct up to $2.5 million in qualifying purchases, with a phase-out beginning at $4 million. (U.S. Bank)
• – Bonus depreciation can boost savings even further: if you hit the deduction cap, bonus depreciation allows you to deduct up to 100% of the remaining qualifying amount for certain assets. (First Business Bank)
• – Used equipment qualifies too: Section 179 applies to used equipment as well; as long as it’s new to your business. (National Funding)

With the right financing plan, Section 179 helps you continue to grow your business while preserving cash – and it’s one of the few tax incentives that truly rewards the investment you put into your business.

The Devil’s Advocate: “You Shouldn’t Finance – Just Pay Cash”
You’ve probably heard this one before: “Don’t finance – you’ll just end up paying a lot of interest; Paying cash is smarter.”

It sounds like responsible advice, but in practice, it can actually hold your business back. Here’s why that argument doesn’t hold up:

• – Tying up capital limits growth: paying with cash can drain your reserves. Financing allows you to preserve cash for operating expenses, marketing, or unexpected needs.
• – Interest costs can be offset by tax savings: the deduction you get through Section 179 often outweighs your total interest paid. In many cases, you end up ahead even after financing costs.
• – You still get the full Section 179 deduction: financing doesn’t disqualify you from the deduction – the IRS treats financed purchases the same as cash purchases – as long as the equipment is placed in operation during the same year.

At Truecore Capital, we’ve helped countless business owners realize that financing is a growth strategy, not a burden – especially when it’s timed with Section 179 deductions.

5 Key Benefits of Equipment Financing

1. 1. Strengthen Business Credit: responsible use of business credit builds commercial borrowing history and opens doors to future funding.
2. 2. Preserve Cash Flow: avoid large upfront costs and keep working capital available for daily operations, emergencies, and new opportunities.
3. 3. Match Payments to Revenue Cycles: we can structure terms to align with your seasonal or project-based cash flow.
4. 4. Flexibility to Upgrade: financing equipment allows you to enhance your equipment without locking up capital that may be crucial to your operations – ultimately allowing your business to stay efficient and competitive.
5. 5. Maximize Tax Deductions: financing equipment doesn’t block your Section 179 or bonus depreciation opportunities.

Learn more about how our Equipment Financing Solutions can fit your business needs.

Act Before December 31st – Timing is Everything
To qualify for the Section 179 deduction, the equipment must be purchased, financed, and placed in service before December 31st of the tax year. Don’t wait until the final week of December – delays in delivery, setup, or installation can unfortunately cause you to miss the cutoff.

Our team at Truecore Capital can help you move fast, offering same-day approvals and flexible terms – including 0% down options on qualifying applications. That means you can secure the equipment now, take the deduction this year, and start generating ROI immediately. Talk to one of our financing specialists today at (805) 422-7342 or fill out a Quick Application to secure your equipment, maximize your Section 179 benefits, and close out the year stronger than ever.

• Sources:
• – IRS, “Publication 946, How to Depreciate Property.” [https://www.irs.gov/publications/p946]
• – Section179.org, “Section 179 Qualifying Financing – Finance Equipment & Vehicles, Save on Taxes.” [https://www.section179.org/section_179_qualified_financing/]
• – US Bank, “Maximizing your deductions: Section 179 and Bonus Depreciation.” [https://www.usbank.com/corporate-and-commercial-banking/insights/credit-finance/equipment/maximize-deductions-section-179.html?]
• – First Business Bank, “The Advantage Of Section 179 For Business Equipment Financing.” [https://firstbusiness.bank/resource-center/advantage-section-179-business-equipment-financing/?]
• – National Funding, “What Equipment Qualifies for the Section 179 Deduction?” [https://www.nationalfunding.com/blog/section-179-qualifying-property/?]