For small- to medium-sized businesses in the flexographic printing industry, managing costs while investing in high-quality equipment can be challenging. Thankfully, Section 179 write-offs offer a powerful way to offset those costs, allowing businesses to take full advantage of depreciation deductions on qualified purchases, including flexographic equipment, in the year they’re acquired.
Let’s dive into how Section 179 works and why it’s a game-changer for companies looking to upgrade or expand their flexographic printing operations.
What Is Section 179 and How Does It Work?
Section 179 is a tax deduction that enables small to mid-sized businesses to write off the entire cost of qualifying equipment in the year it is purchased and put into use rather than spreading the deduction over several years. Known as “first-year expensing,” this provision helps businesses save money upfront and encourages investments in the tools they need to grow. In 2025, the limit for the amount that can be written off is $1,250,000.
This is especially valuable for companies in the printing industry, where flexographic equipment such as presses, anilox rolls, and plate-making machines represent significant investments.
Why Section 179 Matters for Your Business
- Immediate Tax Impact: Rather than waiting years for depreciation benefits, claim the full deduction in 2025.
- Enhanced Cash Flow: Keep more working capital in your business when you need it most.
- Strategic Growth: Upgrade equipment sooner and maintain competitive advantages in your market.
- Immediate Tax Impact: Rather than waiting years for depreciation benefits, claim the full deduction in 2025.
Which Flexographic Equipment Qualifies for Section 179?
A wide range of flexographic printing assets qualifies for Section 179.
Some examples include:
- Printing presses and auxiliary equipment
- Plate-making systems and anilox rollers
- Software and computers used in digital workflows
- Office furniture and equipment for administrative tasks
- Vehicles over 6,000 pounds for business use
Additionally, the deduction applies to both new and used equipment, provided it is “new to you” and purchased for business use. Even improvements to existing buildings, such as security or alarm systems, can qualify under certain conditions.
Key Considerations: Restrictions
There are some restrictions. First, the equipment must be purchased, leased, or financed (and put into service) between January 1 and December 31, 2025 (the same tax year). Second, the the total amount your company spends on equipment and software for the tax year must be below $3,130,000. That’s all! You may want to consult with a CPA or tax advisor to understand how Section 179 can fit into your broader financial strategy.
Why Section 179 Matters for Flexographic Printing
Investing in flexographic equipment can drive efficiency, improve print quality, and open doors to new opportunities, but the costs can be daunting. Section 179 alleviates this burden by allowing you to reinvest your tax savings into further growth.
Moreover, the deduction extends beyond hardware. With advancements in digital workflows, the software, computers, and support systems essential for flexographic printing are also eligible, giving you a comprehensive tax advantage.
Take Action Before Year-End
To maximize your Section 179 benefits, plan your equipment purchases strategically. If you’ve been considering upgrading your printing presses, replacing worn anilox rolls, or investing in advanced software, now is the time to act.
Consult with your tax advisor to ensure compliance and make the most of this opportunity. With Section 179, upgrading your flexographic equipment becomes a smart, cost-effective decision that benefits your business both now and in the future.
By leveraging Section 179, you can equip your business with the tools to stay competitive in the evolving printing landscape while reducing your tax burden. Don’t miss the chance to save big on your flexographic equipment investments!
