Section 179 · Bonus Depreciation · Construction Equipment · Tax Strategy · Immediate Expensing
Section 179 · Bonus Depreciation · Construction Equipment · Tax Deduction · Depreciation
Section 179 Equipment
Deduction.
Section 179 allows construction businesses to immediately expense the full cost of qualifying equipment in the year of purchase rather than depreciating it over its useful life. For a subcontractor buying $300K of equipment, the difference between Section 179 and straight-line depreciation is potentially $270K in additional deductions in year one. Here's how it works and what to coordinate with your CPA.
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SPM vs. Other CFO Firms
Most CFO Firms Serving This Trade
- High revenue minimums — most won't serve under $5M
- Advisory only — no bookkeeping, no implementation
- No job costing setup or ControlQore management
- No monthly WIP as standard deliverable
- No pricing published — discovery call required
- No vetted partner network for bonding, lending, or liens
- No prevailing wage specialty
The Construction CFO — SPM
- Serves $1M–$12M — starts at $1,900/month
- Full implementation — bookkeeping, job costing, CFO advisory
- ControlQore setup and managed for you every month
- Monthly WIP standard in Executive tier
- Full pricing published — no discovery call to find out costs
- Vetted partners for bonding, lending, lien services, payroll
- Prevailing wage and Davis-Bacon specialty
What We See in This Business
01
You're Depreciating Equipment You Could Have Expensed
Most construction companies depreciate equipment over 5–7 years by default — because that's what their bookkeeper set up and nobody questioned it. Section 179 and bonus depreciation offer the opportunity to accelerate those deductions significantly in the year of purchase. If your CPA hasn't specifically analyzed Section 179 strategy for your equipment purchases, you may be paying more tax than necessary.
02
Section 179 Affects Your Financial Statements and Bonding
Immediately expensing a $300K equipment purchase under Section 179 reduces net income by $300K in year one. That reduction flows through to your balance sheet — lower retained earnings, lower equity. Lower equity can impair your bonding capacity. The tax savings from Section 179 can conflict with the financial profile your surety needs to see. This is the coordination challenge between tax strategy and bonding management.
03
Bonus Depreciation Phase-Down Is Changing the Math
Bonus depreciation — which allowed 100% first-year expensing for several years — has been phasing down. It was 80% in 2023, 60% in 2024, and continues phasing down. The tax strategy that made sense when bonus depreciation was 100% is different from the strategy that makes sense today. If your equipment depreciation strategy hasn't been reviewed since 2022, it may be based on rules that have changed.
How SPM Fixes It
How Section 179 Works
Section 179 allows businesses to deduct the full purchase price of qualifying equipment placed in service during the tax year, up to an annual limit (currently $1.16 million for 2024, phasing out above $2.89 million in total qualifying purchases). Qualifying equipment includes most tangible personal property used in business — excavators, trucks, trailers, generators, tools. The deduction cannot exceed your business taxable income for the year.
The Tax vs. Bonding Coordination Challenge
Taking full Section 179 in the year of purchase maximizes tax savings but minimizes reported net income and equity — which affects bonding capacity. Taking no Section 179 maximizes reported net income and equity — which maximizes bonding capacity but results in higher current-year taxes. The optimal strategy is somewhere between the two extremes, and it depends on your specific tax situation and bonding program goals. SPM and your CPA manage this coordination for Executive clients.
Equipment Depreciation Tracked in Books Year-Round
SPM maintains your equipment depreciation schedule in ControlQore year-round — not just at tax time. Your balance sheet reflects accurate equipment values consistent with your chosen depreciation method. When your CPA reviews the depreciation schedule at year end, it's clean, current, and formatted for tax preparation. The Section 179 election gets made with a full picture of the financial statement impact, not as an afterthought.
Service Tiers
Tier 01
Core Financial
Starts at $1,900 / month
- ControlQore setup and management
- Job costing aligned to your estimate structure
- Cost-to-complete tracking — updated monthly
- Full-service bookkeeping — minimum 30 min/week
- Vendor payments via ACH (you approve, we initiate)
- Accounts receivable management
- Bank reconciliations and transaction matching
- Controllership
- 1 monthly CFO meeting
- 60-day onboarding — books migrated to last taxable year
Most Popular
Tier 02
Executive Financial
Starts at $2,900 / month
- Everything in Core Financial
- Monthly WIP schedule — delivered every month, standard
- 13-week cash flow forecasting
- CEO Report — monthly financial dashboard
- 3 CFO advisory meetings per month
- Strategic accountability and actionable to-dos
- Direct access to Josh Luebker
Pricing by Revenue
Revenue Range
(Last 12 Months) |
Core Financial
Monthly |
Executive Financial
Monthly |
| Under $1M | $1,900 | $2,900 |
| $1M – $3M | $2,600 | $3,600 |
| $4M – $6M | $3,800 | $5,500 |
| $7M – $9M | $5,100 | $6,900 |
| $10M – $12M | $6,100 | $8,500 |
| $13M+ | Quoted | Quoted |
Vetted Partner Network
National Lien Services
When AR gets too long, we connect you directly to our lien services partner to protect what you've earned.
Additional cost — not included in monthly fee
Payroll Integration Partners
Prevailing wage and regular payroll software partners integrated directly with ControlQore job costing.
Additional cost — not included in monthly fee
Bonding Partners
Surety relationships and bonding capacity support. We prepare the financials — our partners get you bonded.
Additional cost — not included in monthly fee
Lending Partners
Working capital lines and equipment financing through vetted lenders who understand construction.
Additional cost — not included in monthly fee
Reviewed Financials
CPA-level financial statement reviews for banking, bonding, and large contract requirements.
Additional cost — not included in monthly fee
CPA Coordination
We work alongside your existing CPA — not replacing them. Clean books and job costing make tax time easier.
Included — no extra cost
Common Questions
Straight answers.
Can I use Section 179 on used equipment?
Yes — Section 179 applies to both new and used qualifying equipment. The equipment must be new to you (purchased by your business, not transferred from personal use) and placed in service during the tax year. Used equipment acquired from an unrelated party qualifies for Section 179 in the same way as new equipment.
What is the difference between Section 179 and bonus depreciation?
Section 179 is an elective deduction limited to business taxable income — you can't use it to create a loss. Bonus depreciation has no income limitation — it can create or increase a net operating loss that carries forward to future years. For most construction businesses, Section 179 is used first up to the income limitation, with bonus depreciation applied to any remaining qualifying purchases. Your CPA determines the optimal combination based on your current year income and future year projections.
What's included in Core Financial?
ControlQore setup, job costing aligned to your estimates, cost-to-complete tracking, full bookkeeping (minimum 30 min/week), ACH vendor payments (you approve, we initiate), AR management, bank reconciliations, transaction matching, controllership, and 1 monthly CFO meeting. Starts at $1,900/month.
What does Executive Financial add?
Everything in Core plus monthly WIP schedule, 13-week cash flow forecasting, CEO Report, and 3 CFO advisory meetings per month. Starts at $2,900/month. WIP, cash flow forecasting, and the CEO Report are Executive tier only.
Do you handle payroll?
No. We have vetted payroll software partners — including prevailing wage integrations — that connect directly with ControlQore. Those are separate engagements at additional cost.
How long does onboarding take?
60 days. We migrate your books to the start of your last taxable year, set up ControlQore, and build your job costing structure. Fully operational in two months.
What software do clients use?
ControlQore. All SPM clients run on ControlQore for job costing and WIP. We set it up and manage it — you don't have to learn it. Clients switching from QuickBooks, Sage, or other platforms migrate during onboarding.
Do you work alongside our CPA?
Yes. We work alongside your existing CPA — not replacing them. Clean books and accurate job costing make their job easier at tax time.
What happens when we grow past $12M?
We have a clear graduation path. We prepare your financials, systems, and team for the transition and connect you with the right firm for your next stage of growth.