You’ve probably heard the buzz about IRS Section 179 and if you haven’t acted on it yet, now’s the time.
This tax incentive lets you deduct the full purchase price of qualifying business equipment, including new signage, purchased or financed during the tax year. That means if you’ve been thinking about upgrading your monument sign, illuminated channel letters, or digital display, you could write off a significant portion of that investment this year instead of waiting to depreciate it over time.
But there’s more to Section 179 than to overcome depreciation. This is a significant investment opportunity, as purchasing a new sign could increase your business visibility without the need to miss potential deductions.
So let’s break down what this deduction really means — and how partnering with ViewPoint Sign & Awning can help you make the most of it before the clock runs out..
What is the IRS Section 179 Deduction?
Section 179 of the Internal Revenue Service tax code allows you to deduct the full purchase price of qualifying equipment and property that is purchased or financed and placed in service during the tax year.
For the 2025 tax year, the maximum Section 179 deduction limit is $1,220,000, with a phase-out threshold of $3,050,000, according to the Internal Revenue Service (IRS).
That means most small and mid-sized businesses can deduct the entire cost of their new signage, as long as it’s placed in service during the tax year and used for business purposes.
(Consult your tax advisor for specifics, as every business’s situation is unique.)
Let’s say your business installs a new illuminated channel-letter storefront sign costing $45,000, and you expect zero salvage value. Under traditional depreciation, you might spread that cost over 7 years or more. With Section 179 instead, you could deduct the entire $45,000 in the same year you place the sign in service.
Without Section 179: You’d deduct just $6,429 in year one, resulting in about $1,350 in tax savings.
With Section 179: You’d deduct the full $45,000 upfront, yielding $9,450 in tax savings.
That’s a 600% increase in first-year tax savings—money you could reinvest to make your brand more visible by choosing the right sign for your industry.
What Signage Qualifies Under Section 179?
The IRS generally allows deductions for tangible personal property used in business operations, and most commercial signage falls into this category. So, if your sign helps promote your business or guide customers, it likely qualifies.
Here’s a closer look at what types of signage can be deducted and how each benefits different business owners:
Monument or Pylon Signs:
Perfect for property owners, retail centers, and multi-tenant developments. These large, ground-mounted signs create visibility from the road, attract drive-by traffic, and help customers find your location.
Building-Mounted Channel Letters:
Ideal for storefronts, franchises, and restaurants, and with Section 179, you can upgrade to illuminated or energy-efficient LED letters while writing off the full cost this year.
Interior Lobby & Wayfinding Signage:
Essential for offices, healthcare providers, and hospitality businesses. Interior signs reinforce your professionalism and help visitors navigate your space.
Digital LED Message Boards:
Great for schools, municipalities, and retailers looking to communicate dynamic messages. They offer flexibility to promote events, sales, or updates in real time.
Vehicle Wraps (in Some Cases):
For businesses that rely on company vehicles — like contractors, delivery services, or local trades — professionally branded wraps may qualify.
As long as the sign is purchased or financed and placed in service before year-end, it may be eligible. That means now is the perfect time to start your signage project to ensure you meet the IRS deadline.
Hidden Benefits of Section 179 for Your Business’s Signage
By now, you probably know that your signage is one of your most powerful marketing tools. From attracting new customers to reinforcing your brand identity, great signage works 24/7 to grow your business.
But right now, it’s also one of the smartest financial moves you can make—and smart business owners are jumping on this benefit before the year wraps up, writing off the full cost of their
And the best part? Section 179 rewards you for acting now.
Here’s how it helps your business win on both fronts:
- Write off up to the full cost of your new commercial signage in the same year it’s installed and in use. No waiting, no drawn-out depreciation.
- Reduce your taxable income and free up capital you can immediately reinvest in other parts of your business.
- Make it easier to upgrade your visual presence– from LED lighting to digital message centers–and stay ahead of competitors without the financial strain.
- Whether you pay upfront or through financing, you can still claim the full deduction in the year of purchase.
Ready to Make a Better ROI with Section 179?
By leveraging the IRS Section 179 deduction, you can maximize your return on investment while improving your business’s visibility and curb appeal.
If you’re ready to explore your options for new signage — and make the most of your potential tax benefits — our team is here to help from design to installation.
Contact us today to discuss your signage needs and see how Section 179 can make your investment more affordable this year.