2025 is one of the best years in decades to upgrade your material handling fleet — and yes, that includes refurbished forklifts. The One Big Beautiful Bill Act (now law) permanently restores 100% bonus depreciation and raises Section 179 limits — giving businesses the ability to write off the full cost of qualifying equipment in the year it's placed in service (subject to IRS rules). That means you can buy smarter, reduce your tax bill, and put savings back into operations right away.

Leadership Behind the Law

President Donald J. Trump signs Bill into Law. As outlined in the official White House overview, the One Big Beautiful Bill Act was signed into law on July 4, 2025 as Public Law 119-21. Key provisions go into effect for the 2025 tax year — including restored 100% bonus depreciation and increased Section 179 limits — enabling businesses to invest now and realize immediate tax benefits.

2025 Tax Benefits at a Glance

100% bonus depreciation on qualifying equipment (new or used, if "new to you" and other IRS conditions are met)
Section 179 deduction limit: $2.5 million
Phase-out threshold: $4 million
Effective for property acquired after Jan 19, 2025 (see bill text for specifics and transitional rules)

In practical terms, whether you buy professionally refurbished forklifts or brand-new forklifts from AAA Forklifts, you could potentially deduct the entire cost in 2025 once the equipment is placed in service.

What Is Section 179 — And Why Forklift Buyers Should Care

Section 179 lets eligible businesses deduct the full purchase price of qualifying equipment—like forklifts—in the same tax year the equipment is placed in service, rather than depreciating it over several years.

Example: If you buy a $40,000 refurbished forklift, you may be able to deduct that full amount this year (subject to IRS rules and limits), reducing taxable income immediately. That faster write-off can free up cash for hiring, inventory, or adding another unit to your fleet.

Speed of tax benefit: You get the deduction this year, not over many years (Topic 704).
Caps apply: Section 179 has an annual dollar limit (e.g., $2.5M here) and begins to phase out as total purchases exceed a threshold (e.g., $4M). Examples in Publication 946.
"Placed in service" matters: The forklift must be ready and available for use by year-end to count for this year's deduction (Publication 946).
How to claim: Your pro will typically use Form 4562 (instructions) to elect Section 179.

What Is Bonus Depreciation — And Why It Matters for You

Bonus depreciation (aka "additional first-year depreciation") allows an extra upfront deduction for qualifying property—often letting you expense a large portion of the cost the year it's placed in service.

Key Advantage: Unlike Section 179, bonus depreciation isn't capped by a dollar limit. Under the new law, the percentage is restored to 100% for property acquired after January 19, 2025. Even if you hit the Section 179 cap, bonus depreciation can pick up the rest.

No spending ceiling: If your total purchases exceed the Section 179 limit, bonus depreciation can cover the remainder.
Works with Section 179: Many businesses elect Section 179 first, then apply bonus depreciation to the remaining basis (Publication 946).
Used/refurbished can qualify: The IRS confirms used property can qualify if it's new to you and other conditions are met (see "Does used property qualify?" in the Bonus Depreciation FAQ).

Why This Matters for AAA Forklifts Customers

At AAA Forklifts, every forklift we sell — new, refurbished, or used — can qualify for immediate deductions when the IRS requirements are met and the equipment is placed in service by year-end. That includes electric, diesel, LPG, and heavy-duty units, plus many attachments and accessories.

Refurbished forklifts are new to your business, which means they generally fit the intent of these rules; the IRS has long allowed certain used property for bonus depreciation when specific conditions are satisfied. Always confirm your facts with your tax pro.

Quick Comparison: Section 179 vs. Bonus Depreciation

Feature	Section 179	Bonus Depreciation
Year-1 deduction	Up to $2.5M (2025 limit), phases out after $4M	100% for qualifying property acquired after Jan 19, 2025; no dollar cap
New vs. used/refurbished	Applies to qualifying equipment acquired by purchase for business use (see IRS rules)	Includes certain used property if "new to you" and IRS conditions are met
Best for	Small to mid-size purchases up to the cap	Larger purchases, or amounts exceeding Section 179 cap
How to claim	Elect on Form 4562	Handled per Publication 946 depreciation rules

Financing That Works With Your Tax Strategy

We offer flexible options so you can preserve cash and still capture your 2025 deduction:

In-house financing
Bank financing
90 Days Same As Cash
Up to 120 days no-payment financing* — for qualified buyers

Pair financing with 100% bonus depreciation or a Section 179 election to lower after-tax costs and get forklifts working for you immediately.

How to Take Advantage in 2025

Choose your equipment — browse refurbished forklifts or new forklifts.
Finance or purchase outright — both may qualify for deductions (confirm with your tax advisor).
Get it placed in service before December 31, 2025 (installation/ready-to-use matters to the IRS).
File properly — your professional will advise on elections and forms (see Form 4562 instructions).

Official References

Disclaimer: This article is for informational purposes only and is not tax advice. Tax outcomes depend on your facts. Consult your tax professional about your specific situation.

*120 Days No-Payment Financing available for qualified buyers only.

2025 Tax Update: Section 179, 100% Bonus Depreciation & Why Refurbished Forklifts Qualify