Maximize Your Tax Savings with LS Tractor and Section 179
As 2025 winds down, smart business owners are looking for ways to reduce their tax burden while investing in the future of their operations. One of the most powerful tools at your disposal? The Section 179 tax deduction.
At LS Tractor USA, we’re here to help you take full advantage of this opportunity by investing in high-quality, reliable equipment that works as hard as you do. Whether you’re upgrading your fleet, expanding your capabilities, or investing in your first tractor, purchasing LS Tractor equipment before December 31 is a smart financial move that could mean major tax savings.
What is Section 179?
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment, like tractors and attachments, from their gross income in the year the equipment is placed into service. That means instead of depreciating your purchase over several years, you can write off the entire cost now.
This deduction was designed to support small businesses and has been included in many recent stimulus acts and congressional tax bills. While large businesses also benefit, Section 179 is especially impactful for small and medium-sized operations. Whether you’re a farmer, landscaper, contractor, or property manager, this deduction can significantly reduce your tax bill while boosting your productivity.
How LS Equipment Qualifies
LS Tractor USA Regional Sales Manager, Dave Teigen, is especially excited about this opportunity for business owners in the agricultural community. “The Section 179 tax incentive is a huge benefit if you have a farm business.” Teigen explains that you can elect to deduct up to $1,250,000 toward equipment, vehicles, and/or software if these items are used for business purposes more than 50% of the time. To calculate your deduction, simply multiply the cost of equipment, vehicle(s), and/or software by the percentage of business use to arrive at the monetary amount eligible.
LS Tractor offers a full lineup of compact, utility, and sub-compact tractors plus attachments and implements – all of which qualify for Section 179 if they are put into use this year, and used more than 50% of the time for business purposes. Whether you’re buying or financing, you can take advantage of this incentive.
Let’s look at an example:
Scenario:
- A farm business buys a tractor for $50,000
- The tractor is used 100% for business
- The farm is in a 24% tax bracket
The tractor qualifies for Section 179 because it’s placed in service during the tax year, and used more than 50% of the time for the business
How the Deduction Works:
Under Section 179, the farm can deduct the entire $50,000 from its taxable income in the year the tractor is placed in service
- Deduction amount: $50,000 x 100% usage for business = $50,000
- Tax Rate: 24%
- Tax Savings: $50,000 x 24% = $12,000
By using Section 179, the farm is able to write off the entire purchase of the tractor and reduces its tax bill by $12,000 for that year.
Traditional depreciation would take that asset and depreciate it over the course of 5 years at $10,000 each year. However, Section 179 would instead give a farm business immediate tax relief, helping with cash flow and reinvestment. You will have effectively reduced the investment in the tractor to $38,000. As always, this would all be subject to an individual’s tax accountant approval.
Why Buy Now?
From the hardworking MT2 Compact Tractor Series to the versatile and powerful MT7 Utility Tractor Series, LS Tractor machines are built for performance, reliability and value making them a smart investment for your operation and bottom line.
Timing is everything. To claim the deduction for 2025, your LS Tractor equipment must be delivered and in use before the end of the year. That means now is the time to act!
For this year, bonus depreciation is also available at 100%. While Section 179 is generally taken first, bonus depreciation can help businesses that exceed a $4 million spending cap or operate at a net loss. Together, these provisions offer powerful tax planning flexibility.
Here is what you gain:
- Immediate tax savings: reduce your taxable income for 2025
- Improved cash flow: Keep more money in your business
- Operational upgrades: Get the tools you need to grow and compete
Finish the Year Strong with LS Tractor
At LS Tractor USA, we’re proud to support hardworking people with equipment that’s built for durability, performance, and value. This opportunity is more than a tax break – it’s a chance to invest in your business with equipment that delivers year after year. We are proud to support our customers with machines that work as hard as you do. Our dealers are ready to help you find the right model for your needs and guide you through the Section 179 process.
The clock is ticking. Visit your local LS Tractor dealer today to explore our lineup and make your purchase before the year ends. Let Section 179 work for you, and let LS Tractor power your success.
Published on September 30, 2025 and written by Kimberly Steele.