Take Advantage of Section 179 and Save Money on Your New LED Sign Purchase

When it comes to paying taxes, finding good news can be rare. But for businesses investing in new signage this year, there are meaningful tax deductions available that can help lower your tax bill and strengthen your bottom line.

Tax Deductions for Digital Signage Purchases

The latest tax reform package provides valuable deductions to businesses that purchase qualifying equipment, including digital signage and billboards. The goal is to encourage American businesses to invest in tools that help them grow, improve profitability, and boost the economy. These tax incentives can translate into real savings, making now an excellent time to upgrade your signage.

Understanding Section 179 and Bonus Depreciation

Section 179 allows businesses to deduct the full purchase price of qualifying equipment, such as LED or digital signage, purchased and placed into service during the tax year. Rather than depreciating the cost over several years, companies can write off the entire amount right away, reducing taxable income for that year.

Section 179 works alongside Bonus Depreciation, which lets businesses deduct equipment costs above the standard depreciation limit. This combination can dramatically reduce your upfront costs and improve cash flow.

100% Bonus Depreciation and Upcoming Changes

Under the current rules, businesses can take advantage of 100% Bonus Depreciation if qualifying property is acquired and placed into service before the end of the tax year.

For property acquired and placed in service on or after January 19, 2025, companies can permanently deduct 100% of the cost in the first year.

Let’s say your business invests $50,000 in new digital signage in 2025. Under Section 179, your first-year deduction is the full amount, $50,000. If you’re in a 32% tax bracket, that equals $16,000 in cash savings, lowering the effective cost of your investment to $34,000.

This immediate deduction helps improve cash flow and makes it easier for small and medium-sized businesses to reinvest in their growth.

Plan Ahead for Maximum Tax Benefits

With these deductions now written into law, Section 179 and Bonus Depreciation can serve as valuable planning tools. Whether you buy, finance, or lease new signage, understanding how to use these deductions can maximize your savings and support your long-term business goals.

To learn how Section 179 deductions and Bonus Depreciation can work for you, talk to your tax professional. For information on purchasing LED signage, contact your Watchfire representative.