The federal government has set up tax incentives to encourage small to mid-size companies to purchase much needed equipment. Section 179 allows the deduction of up to the full purchase price of asphalt milling machines, asphalt grinders, and cold planers. This allows companies to invest in their growth while still maintaining a healthy cash flow.
The deduction limit for 2025 is $1,220,000, with a spending cap of $3,050,000. This means it could be possible to write off the entire purchase of asphalt milling or utility trenching equipment this year. In other words, you might have the money to upgrade your cold planer or asphalt grinding machine and not know it. Understanding Section 179 can help you make smarter, more profitable decisions.
Eligible Equipment: What Qualifies?
Machinery used in asphalt paving, utility trenching, and construction industries may qualify under Section 179, including:
- Asphalt Milling Machines / Cold Planing Machines: a critical part of pavement rehabilitation. A rotating milling drum removes the top layer existing asphalt prior to applying an asphalt overlay over the milled surface. Theses machines also mill the road surface to precise depths for trench plate recessing and t-cuts.
- Asphalt Grinding Machines: Grind asphalt surfaces prior to opening utility trenches. Using a rotating drum, an asphalt grinder quickly and efficiently pulverizes asphalt into reusable material. This eliminates the extra time and expense involved in saw-cutting, chunking, loading, and hauling asphalt.
- Road Reclaimers: Utilized in the full-depth reclamation process. Asphalt reclaimers simultaneously pulverize the full depth of the existing road surface and blend it with the road base. After proper compaction, this stabilizes the road base.
This cost-effecting method uses recycled existing material as base material. It helps eliminate potholes, ruts and alligator cracks long term, including on roads with heavy traffic.
No matter what kind of work you do, your investment in equipment can qualify you for significant tax savings.
Real-World Benefits for Contractors
If you specialize in utility trenching, you might saw cut and chunk your asphalt and pay for hauling and asphalt disposal fees. This is a time-consuming, multi-step process. However, you may be able to purchase an asphalt grinding machine instead with your section 179 deduction.
A portable asphalt grinding attachment pulverizes the same asphalt into reusable material suitable for trench backfill. An asphalt grinding project that would to take 8 hours now takes 30 minutes, with substantial cost and time savings.
Possibly your project also requires recessed trench plates or t-cuts. The same asphalt grinder has precise hydraulic depth control that will allow you to mill just a few inches off the asphalt surface. This gives you two applications with one machine on the same job site.
In another scenario, you might have a paving project in a parking lot. Asphalt repairs with a large cold planer or road reclaimer could be over your budget. A larger machine is also much more difficult to transport and can’t manuever around light poles and curbs.
The same portable asphalt grinding attachment you used for your utility trenching is also a powerful road reclaimer. Pulled behind a work truck to the jobsite, it connect in minutes to your loader or backhoe. It also easily maneuvers in tight spaces and along curbs.
A portable asphalt grinding attachment quickly pulverizes the existing surface into spec comparable aggregate material. Then it blends the newly recycled material into the base. This eliminates or greatly reduces the need to haul out asphalt chunks and haul in additional aggregate.
Investing in a new asphalt grinder provides many benefits to contractors. These include reduced project time and expanded service offerings. Section 179 puts these benefits in reach by allowing contractors to deduct up to the full purchase price of a machine this year.
How to Claim Section 179 for Asphalt Grinding Equipment
Using Section 179 is straightforward, but timing is critical. Here’s what to do:
- Make sure your equipment qualifies under IRS guidelines.
- Consult with your accountant or tax professional to determine the most advantageous way to put Section 179 to use.
- Buy or finance Before December 31. You must place the equipment into service by year-end.
- Keep Documentation: Save purchase receipts and financing agreements.
- File IRS Form 4562. This form allows you to claim your Section 179 deduction
Don’t Wait—Act Before Year-End
You need to act now if you’re planning to buy an asphalt grinder machine, a cold planer, or other qualifying equipment. For more information, an excellent resource is the website Section179.org. Don’t miss out on the benefits Section 179 can deliver for your asphalt or utility business.
Key Takeaways:
- Section 179 allows full tax deductions of up to $1,220,000 in 2025.
- Eligible asphalt equipment includes asphalt milling machines, asphalt grinders, and road reclaimers.
- Portable asphalt grinding attachments offer multi-use functionality—handling asphalt grinding, t-cuts, recessed trench plates, and full-depth reclamation.
- You can save money and improve cash flow by using Section 179 before December 31.