If you’ve been waiting for the right moment to add a CNC machine to your shop, December 2025 might be it. A rare combination of expanded tax incentives, year-end dealer pricing, and favorable financing conditions makes Q4 an exceptional window for used equipment purchases.
Here’s what’s driving that opportunity—and how to take advantage of it before the December 31 deadline.
The Tax Benefits Have Never Been Better
The One Big Beautiful Bill Act, signed July 4, 2025, dramatically expanded equipment tax incentives.
Section 179 deductions doubled from $1.25 million to $2.5 million. This allows businesses to deduct the full purchase price of qualifying equipment in the year it’s purchased rather than depreciating it over time.
100% bonus depreciation was permanently restored. It had been scheduled to drop to just 40% in 2025. Now it’s back to full deductibility—and it applies to used equipment, not just new.
What does this mean in real dollars? A used Haas VF-2 purchased for $75,000 generates roughly $26,250 in tax savings at a 35% tax bracket. That brings your effective cost down to under $49,000.
For larger purchases, the math gets even better. A $200,000 equipment investment could save you $70,000 in taxes—money back in your pocket for tooling, training, or your next project.
The catch: Equipment must be “placed in service” by December 31, 2025. That means delivered, installed, and operational—not just ordered or paid for.
US Manufacturing Investment Is Surging
The headline numbers might seem confusing. The ISM Manufacturing PMI registered 48.2% in November 2025—technically indicating contraction. But underneath that number, something bigger is happening.
Manufacturing construction spending hit a record $238 billion in mid-2024 and has doubled since 2021. The Reshoring Initiative reported 244,000 jobs announced through reshoring and foreign direct investment in 2024—the second-highest year ever recorded.
Apple committed $600 billion over four years for domestic manufacturing. TSMC is building $150 billion in Arizona semiconductor fabs. GE Aerospace announced $4 billion across three US sites. ISM projects 5.2% growth in capital expenditures for 2025.
What this means for equipment buyers: demand for quality used machines remains strong, and companies upgrading to new equipment are feeding the used market with well-maintained machines.
Year-End Dealer Dynamics Work in Your Favor
December creates unique negotiating leverage for buyers.
Inventory carrying costs—storage, insurance, floor plan financing—accumulate throughout the year. Dealers have strong motivation to convert aged inventory to cash before closing their books.
Industry analysis from Machinery Trader captures the current market: auction values have declined while retail asking prices are adjusting more slowly. The publication advises dealers heading into year-end to sharpen pricing and have tough conversations about inventory.
Meanwhile, companies with “use it or lose it” capital budgets need to deploy funds before year-end. This dual pressure benefits buyers: dealers want to move inventory while buyers need to capture tax benefits.
Financing Conditions Are Favorable
The Federal Reserve has cut interest rates twice in late 2025, bringing the federal funds rate to 4.00%. Equipment financing rates currently range from 6% to 20% APR depending on creditworthiness, with banks and credit unions typically offering 6-12% for strong borrowers.
Streamlined applications for loans under $250,000 often require just a one-page application with same-day approvals. Many lenders offer commitment-free pre-approvals that accelerate final closing.
One important distinction: operating leases do not qualify for Section 179 or bonus depreciation—only the lease payments are deductible. A capital lease or financed purchase allows full first-year deduction of the equipment cost while spreading payments over multiple years.
Your December Timeline
The window is tight but manageable with proper planning.
Early December (Now through December 15): Finalize equipment selection and schedule inspections. Begin financing applications. Verify your facility is ready—power, air, foundation, doorway clearance. Talk to your accountant about your deduction strategy.
Mid-December (December 15-20): Complete purchase agreements and financing documentation. Confirm delivery dates in writing. Arrange rigging and installation.
Late December (December 21-31): Take delivery and complete installation. Document “placed in service” status with photos, commissioning records, and acceptance forms.
What to Look for When Buying Used
Thorough inspection is non-negotiable. Key areas to evaluate:
Spindle condition – Listen for unusual noises and check for excessive play. The spindle is the heart of the machine and expensive to replace.
Guideways and ball screws – Look for wear patterns, check for backlash, and verify smooth travel across the full range.
Control system – Verify responsiveness, check for error codes, and confirm software compatibility with your programming needs.
Documentation – Request maintenance logs, usage hours, and operator manuals. A well-documented machine suggests a well-maintained machine.
Power-on test – Any seller refusing to run the machine under power is a red flag. Watch it cycle, run a test program, and listen for anything unusual.
The Bottom Line
December 2025 presents a rare alignment of factors for used CNC equipment buyers. Doubled Section 179 limits and restored 100% bonus depreciation mean substantial tax savings. Year-end dealer inventory pressure creates negotiating room. Strong manufacturing investment signals continued demand for machining capacity.
A $100,000 used CNC machine can effectively cost $65,000 after tax savings at a 35% bracket—with financing spreading actual cash outlays over years while the full deduction is taken immediately.
The deadline is firm: December 31, 2025. Equipment must be delivered, installed, and operational to qualify. For shops positioned to act, the opportunity is clear.
