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If you’re planning equipment purchases in 2025, there’s more than one reason to move now. The Internal Revenue Service (IRS) Section 179 deduction, allows businesses to write off the full purchase price of qualifying equipment, like solvent recycling and recovery systems, from their gross income in the same tax year. This deduction has been expanded from 2024 and once again is a timely incentive for companies planning to upgrade their operations.
The maximum deduction limit has increased to $1.25 million for 2025, with a phaseout threshold of $3.13 million as part of broader tax incentives proposed under the One Big Beautiful Bill Act (OBBA). That means if you purchase equipment and have it in service by December 31, 2025, you may be eligible to deduct the full cost from your taxable income.
For companies making capital investments, this deduction effectively reduces the price of equipment by 20% or more, depending on the tax rate. Let’s say you purchase a $25,000 solvent recycler. If you qualify for the full deduction and your corporate tax rate is 21%, your tax savings would exceed $5,000, bringing your net acquisition cost closer to $20,000.
Section 179 Is More Valuable Than Ever in 2025
With the deduction limits increasing, it’s an ideal time to upgrade systems or invest in new technologies that improve your operations. Due to current global trade conditions, including the advent of tariffs, buying now may also help you avoid additional costs.
Tariffs and the Shift Toward Domestic Manufacturing
In 2025, tariff revenue remains high, with customs duties generating over $77 billion in 2024 and more than $88 billion in new tariffs collected by August 2025 alone. While some tariffs, particularly those enacted under Section 301, are facing legal challenges, it remains uncertain whether previously collected funds will be refunded or how rulings could affect future import costs.
For now, these additional costs are passed directly to buyers. That makes domestic sourcing a smarter move for many operations, including labs, manufacturers, and production facilities facing high-volume chemical or equipment needs.
Considering current business and supply chain conditions, purchasing American-made equipment like CBG Biotech’s solvent recycling systems aids your operational quality and reliability. It also helps you avoid unpredictable international tariffs, fortify your supply chain and strengthen your long-term cost control.
Why Solvent Recycling Systems Qualify
Solvent recyclers, such as CBG’s SolvTrue™ and PathTrue™ systems, are classified as capital equipment. That means if you purchase one of these systems and place it into service before year-end, you can likely deduct the full purchase amount under Section 179.
This deduction applies whether you’re buying to reduce solvent waste in a histology lab, support internal part-washing workflows in additive manufacturing, or streamline your facility’s chemical handling and compliance.
Because CBG Biotech solvent recycling systems are designed and built in the USA, you benefit from a fast, tariff-free supply chain, service from domestic technicians, and eligibility for federal and state incentives.
Key Takeaways
- Deduct up to $1.25 million in qualifying equipment purchases for 2025
- Equipment must be purchased and placed in service by December 31, 2025
- Applies to new or CleanPlanet-Owned (CPO) solvent recyclers that meet eligibility criteria
- Helps offset rising costs from global tariffs
- Supports investment in sustainable and domestic manufacturing practices
Capitalize on Section 179 While it's Still Available
Now is a smart time to explore solvent recycling solutions that can reduce costs, support sustainability goals, and improve operational efficiency across your lab or production environment. Contact us to learn about what’s possible for your facility.
Check out these other helpful resources:
- Blog Post: Capitalize on Section 179 Now for 2024 Tax Savings on Your Equipment Purchases This provision allows labs and production facilities to write off the full cost of qualifying capital expenditures like equipment purchases.
- Blog Post: Beyond Disposal: The Industrial Advantage of Solvent Recycling
By shifting the mindset from disposal to resource optimization, companies can reinvest in their business through solvent recycling.
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