By Victoria Clifford, Vice President of Sales and Marketing, MAZO Capital Solutions
As a dealer, you know that closing a deal often comes down to demonstrating value beyond the sticker price.
While your customers are experts in their own business, they may not be up-to-date on the latest tax incentives that can drastically reduce their after-tax equipment costs. This scenario is where the Section 179 calculator becomes your most powerful sales tool.
By combining this deduction with a flexible financing solution, you can help your customers acquire the equipment they need while maximizing their savings.
Recent signals from the Federal Reserve could have a major impact on whether to finance equipment.
Even if financing costs go down, the value of the equipment you're selling won't.
This is a big plus for your customers. It means that their investment will hold its value, making their business stronger and giving them a better deal when they're ready to trade it in or sell it down the road.
By leveraging the Section 179 calculator now, you can show your customers how they can benefit from both immediate tax savings and a market that is poised for more favorable financing conditions.
As a dealer, your customers will want to know exactly what they can purchase and deduct. The rules for the 2025 tax year are especially favorable, with significant increases in deduction limits and a major reinstatement of bonus depreciation. Here are the key details you can share:
Under the One Big Beautiful Bill Act (OBBBA), which took effect this year, the Section 179 rules have been substantially improved.
The Section 179 deduction is not limited to heavy machinery. A wide range of tangible business assets qualify, and dealers across many different sectors can use this to their advantage.
While almost any business can take advantage of Section 179, some industries that are highly capital-intensive can see the most dramatic benefits.
Using the calculator is not just about crunching numbers; it’s about guiding your customer to an informed decision. Here is a step-by-step guide showing how to incorporate it into your sales conversations:
Identify the Customer’s Need: Start the conversation by discussing the equipment the customer is interested in and the impact it will have on their business.
Ask About Their Budget & Tax Situation: A simple question, such as, "Are you aware of the tax savings that might apply to this purchase?" can open the door to a more detailed discussion. This is your cue to introduce the Section 179 tax deduction calculator.
Input the Numbers: Using the calculator, input the equipment's price and your customer's estimated tax bracket.
Show the After-Tax Cost: The calculator will instantly show your customer the substantial savings and the actual after-tax cost of their equipment. This is often the lightbulb moment that can turn a hesitant buyer into a confident one.
Present the Financing Option: Once the customer sees the savings, present a financing plan that aligns with their cash flow needs. This demonstrates how MAZO Capital can help them acquire the equipment now and reap the tax benefits immediately.
To make the savings tangible, you can provide a few scenarios. The following table illustrates the potential savings for a business in the 21% tax bracket purchasing equipment in different price ranges.
| Equipment Cost | Section 179 Deduction | Tax Savings (21%) | After-Tax Cost |
| $250,000 | $250,000 | $52,500 | $197,500 |
| $500,000 | $500,000 | $105,000 | $395,000 |
| $1,000,000 | $1,000,000 | $210,000 | $790,000 |
Note: These figures are for illustrative purposes and do not constitute tax advice. Please advise your customers to consult with their tax professional.
As you can see, the 179 tax deduction calculator makes it simple to show a customer how they can significantly reduce their after-tax equipment cost, in some cases by as much as 37%.
MAZO is a full-service commercial finance company dedicated to powering America’s entrepreneurial spirit. We understand dealerships and know that your business is built on trust and expertise.
By partnering with MAZO, you gain access to more than just a financing provider; you gain a strategic partner who empowers you with the tools and knowledge to close more sales. We provide you with the Section 179 deduction calculator to help you demonstrate value, simplify the sales process, and increase your deal flow.
Ready to empower your sales team and close more deals? Contact MAZO today to learn how to integrate our Section 179 Calculator and vendor financing program into your sales process.
