Section 179 Tax Benefits for Contractors | Forward Solutions
Maximize Your Year-End Savings with Section 179
As the year winds down, contractors across industries — from telecom and utilities to MRO, construction, and electrical — are preparing for the year ahead. But before closing the books, there’s a powerful financial opportunity that shouldn’t be overlooked: the Section 179 tax deduction.
Section 179 allows businesses to deduct the full purchase price of qualifying equipment and tools purchased and placed into service before December 31. That means if your company invests $25,000 in tools this year, you can deduct the entire amount from your taxable income this year, rather than depreciating it over time.
It’s a simple, effective way to reduce your tax burden while reinvesting in your team’s productivity, safety, and long-term success.
What is Section 179?
Section 179 of the IRS tax code is designed to encourage businesses to invest in themselves by purchasing new equipment. Instead of spreading deductions across several years, Section 179 allows you to take the full deduction immediately — provided your purchases meet the eligibility rules.
Key requirements include:
- Equipment must be purchased and placed in service by December 31 of the current tax year.
- It must be used primarily for business purposes.
- It must qualify as tangible property — such as tools, machinery, vehicles, or specific software.
This means that planned purchases can become immediate tax savings for contractors in telecommunications, utilities, industrial operations, construction, and electrical work.
What Products Qualify for Section 179?
Many tools and equipment that keep your teams productive daily may qualify. It likely meets the requirements if it’s essential to your operations and used primarily for business.
Examples include:
- Telecom & Utility Tools:
Hydraulic crimpers, cable pullers, fiber blowers, underground installation gear, labeling systems, and testing tools.
- MRO, Industrial & Construction Tools:
Power tools, industrial equipment, consumables, safety gear, and facility maintenance systems.
- Electrical Tools & Equipment:
Conduit benders, testers, electrical hand tools, and installation equipment for residential, commercial, and utility-scale projects.
While the IRS doesn’t publish an itemized list of eligible tools, the general rule is clear: if the item is tangible, used more than 50% for business, and placed in service this year, it likely qualifies for Section 179.
How Forward Solutions Can Help
At Forward Solutions, we support our divisions and their customers by helping them identify and secure the tools, equipment, and technology that drive performance — and by making sure they can take advantage of opportunities like Section 179 before the deadline.
Our teams can help you:
- Identify Section 179-eligible purchases that align with your business goals.
- Plan and confirm product availability before the year-end deadline.
- Maximize your investment in tools that strengthen your operations heading into the new year.
Key Takeaways: Section 179 at a Glance
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Deduct up to 100% of qualifying tool and equipment purchases made and placed in service by December 31.
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Applies to a wide range of tools and machinery across telecom, utility, MRO, construction, and electrical markets.
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A smart way to reduce taxable income this year while investing in next year’s success.
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Forward Solutions and our divisions can help you identify eligible products and plan to capture these savings.
Act Now: Don't Let the Year End Deadline Pass You By
Every day counts as December 31 approaches.
Connect with Forward Solutions or contact your sales representative at StruXur directly to review eligible products, get fast quotes, and fully take advantage of Section 179 before the year-end deadline.
About Forward Solutions
Forward Solutions is the engine behind a national portfolio of outsourced sales and service brands — including Avision®, C3Team™, Curate®, Electris360™, OneSolution™, PJ Boren, RelyPak®, StruXur®, and Xpand Demand™. We handle back-end operations and connect customers to multi-channel sales models, providing a smarter, more scalable path to growth.