Section 179 Tax Deduction: What Laundromat Owners Need to Know

At Cents, we're committed to helping laundromat owners and operators make smart business decisions, and that includes understanding how tax incentives can make technology upgrades more affordable. One of the most valuable tools available to laundromat operators is the Section 179 tax deduction, which allows you to write off the full cost of qualifying equipment in the year you purchase it.

As the year-end deadline approaches, we've compiled this blog to help you understand how Section 179 works, what equipment qualifies, and how to take advantage of this opportunity. While we're experts in laundromat technology, we always recommend consulting with your tax advisor to determine how Section 179 specifically applies to your business situation.

What is Section 179?

Section 179 of the Internal Revenue Code allows businesses to deduct the full purchase price of qualifying equipment and software in the year it's placed in service, rather than depreciating it over multiple years. For laundromat owners, this means you can immediately write off investments in payment systems, pos equipment, washers, dryers, and other essential equipment.

2025 Section 179 Limits

According to IRS Publication 946, the official limits for 2025 are:

Maximum deduction: $1,250,000
Phase-out threshold*: $3,130,000 in total qualifying purchases
Additional bonus depreciation: 40% available for qualifying property

*The deduction begins to phase out dollar-for-dollar once total equipment purchases exceed $3,130,000.

What Laundromat Equipment Qualifies?

The following laundromat equipment qualifies for Section 179:

Payment system technology
Card and phone payment systems
Point-of-sale (POS) computers and terminals
Payment kiosks and card readers
Laundry management software (off-the-shelf only)
Back-office computers

Laundry Equipment

Commercial washers and dryers (hard-mount or soft-mount)
Stack dryers and ironers
Water heating and reuse systems

Facility Improvements

HVAC system upgrades
Fire alarm and security systems
Roofing improvements
Interior improvements to nonresidential buildings

Vehicles

Delivery vehicles (with special limits for SUVs - $31,300 cap)

Requirements to Qualify

To claim Section 179, your equipment must meet these IRS requirements:

Purchased and placed in service between January 1 and December 31, 2025
Used more than 50% for business purposes
Acquired through purchase (not inherited or gifted)
Tangible personal property used in your business
"New to you" - can be used equipment, as long as you haven't previously owned it

Important: The deduction cannot exceed your taxable business income for the year.

What Doesn't Qualify

Section 179 does NOT apply to:

Land and permanent building structures
Property used outside the United States
Property inherited or received as a gift
Property purchased from related parties
Custom-built software

How to Claim Section 179

To claim the deduction:

Complete IRS Form 4562 (Depreciation and Amortization)
Attach it to your business tax return
Maintain detailed records of purchase date, cost, and business use
Ensure equipment is placed in service before December 31, 2025

Financing & Section 179

You can claim the full Section 179 deduction even if you finance your equipment purchase. The IRS treats financed, leased, and cash purchases equally for Section 179 purposes.

Planning Your Year-End Equipment Purchases

Critical deadline: Equipment must be purchased AND placed in service (installed and operational) by December 31, 2025, to qualify for the 2025 tax year.

Pro tip: Account for delivery and installation time when planning year-end purchases. Order as soon as possible to ensure equipment is operational before the deadline.

Next Steps before making equipment purchases:

Consult your tax advisor to determine how Section 179 applies to your specific situation
Calculate your taxable business income to understand your deduction limit
Identify qualifying equipment needed for your laundromat
Plan installation timeline to meet the December 31 deadline

Section 179 presents a valuable opportunity for laundromat owners to invest in their businesses while reducing their tax burden. Whether you're upgrading to modern payment technology, replacing aging equipment, or expanding your operations, understanding this tax incentive can help you make strategic year-end decisions.

Have questions about Section 179 or which Cents products might be right for your business? We're happy to provide information about our technology solutions, but we always recommend working with your CPA or tax advisor for specific tax guidance. Tax laws are complex and every business situation is unique—your tax professional can help you understand exactly how Section 179 applies to you and ensure you're maximizing your benefits.

Ready to explore your options? Contact our sales team to learn more about qualifying Cents and Laundroworks technology that can modernize your laundromat operations before the December 31st deadline.

Important Notice: Conflicting Section 179 Information

Conflicting information exists about 2025 Section 179 limits. Some sources report $2.5M limits based on 2025 legislation, while official IRS Publication 946 shows $1.25M limits.

This article uses IRS Publication 946 figures. However, consult your CPA or tax advisor to determine which limits apply to your situation before making purchase decisions.

Disclaimer: This article provides general information only and is not tax advice. Cents is not a tax advisory firm. Tax laws are complex and subject to change. Always consult with a qualified tax professional or CPA regarding your specific situation and how Section 179 applies to your business.

Section 179 Tax Deduction: What Laundromat Owners Need to Know