Section 179 can lower your tax bill substantially. Since its establishment in 1958, the tax incentive has changed significantly. The latest extensions and expansions occurred on July 4, 2025, with the passage of H.R. 1, the One Big Beautiful Bill Act (OBBBA).

What is Section 179, and How Has It Changed in 2025?

Section 179 of the U.S. tax code is an immediate expense deduction. It allows you to deduct the cost of qualifying property in the year it was placed into service, rather than depreciating the asset over several years.

For 2025, changes under OBBBA include: Made Section 179 and bonus depreciation permanent with limits adjusted annually for inflation. Doubled the Section 179 deduction limit from $1.22 million to $2.5 million. Raised the phase-out threshold from $3.13 million to $4 million. Increased the full phase-out cap from $4.27 million to $6.5 million. Extended TCJA rules for allowing real-property improvements. Restored 100% bonus depreciation.

Section 179 Tax Benefits for PROs

Portable restroom operators can take advantage of tax benefits by purchasing equipment before the end of 2025. Every dollar deducted under Section 179 reduces your taxable income by a dollar. Financing new or used portable restrooms, trucks, and trailers can keep more money in your pocket the first year, allowing you to grow your business and pay off loans earlier.

Use Section 179 Tax Incentives to Optimize Investments

The 2025 updates to Section 179 and bonus depreciation made these tax advantages permanent, giving PROs confidence to plan future purchases. Whether you're adding more toilets or upgrading your shop's HVAC system, these deductions can help offset taxable income and strengthen cash flow.

Section 179 Tax Deduction Examples and Calculations

Let's look at practical examples. If you purchase a $40,000 used portable restroom unit and $20,000 in equipment upgrades under Section 179, you can deduct the full $60,000 in 2025. This reduces your taxable income by $60,000. If you're in the 25% tax bracket, that's an immediate $15,000 tax savings—15% of your investment back in your pocket on tax day. If you're considering multiple purchases, the math becomes even more compelling.

Equipment Purchases That Qualify

Section 179 applies to most portable sanitation equipment: restroom units, vacuum trucks, holding tanks, pumps, hoses, water systems, and related equipment. It covers both new and used equipment (with some restrictions on used property). The key requirement is that you place the equipment into service for your business during the tax year. Planning your purchases strategically allows you to maximize deductions while building your fleet.

TOICO's Role in Your Tax Strategy

TOICO Industries stands as the industry's leading provider of portable sanitation equipment and supplies. Whether you're upgrading your fleet, optimizing operations, or seeking equipment solutions, TOICO's expert team understands how to help you maximize your equipment investment while achieving your business goals. TOICO can help you identify the right equipment purchases to support both your operational needs and your tax planning strategy. When making equipment investment decisions, TOICO's experienced team provides guidance on total cost of ownership, equipment options, and how to structure purchases for optimal tax benefit.

Planning Your 2025 Equipment Purchases

Work with your accountant to develop a strategic equipment purchase plan. Identify what equipment your business needs for growth and efficiency, then structure purchases to maximize Section 179 benefits. The $2.5 million deduction limit is generous for most operations, and the extended deadline (through December 31, 2025) gives you time to plan.

Ready to improve your operation's efficiency? Explore TOICO's equipment and supply solutions at www.toico.com or contact our team at 1-888-935-1133 for a customized recommendation. Let TOICO help you select the right equipment to maximize your tax benefits and operational success.