It’s official—the Section 179 tax deduction was signed into law today by President Obama. The deduction allows farmers to write off up to $500,000 in capital assets purchases, such as farm equipment, instead of depreciating over time.

The deduction can be applied for new or used equipment, but it must be purchased by Dec. 31, 2014.

“This will allow our customers to invest in the equipment they need to make the most out of the upcoming season,” said Abe Hughes, Vice President of New Holland, North America. ” They have worked hard all year and this is an opportunity for them to make that work pay off.”

By Jen Russell