Investing in forklifts, sideloaders, piggyback forklifts and other material-handling equipment is a necessity for warehouse, manufacturing, distribution and port operations. But in 2025, thanks to favorable tax rules, such purchases can also deliver a powerful tax benefit right away: Section 179 expensing (plus bonus depreciation).

Below, we will explain:

• What Section 179 is, in simple terms
• How it applies specifically to forklifts and material-handling equipment
• The 2025 limits and mechanics you need to be aware of
• The benefits — and some cautions — of using Section 179 for forklift purchases

What Is Section 179?

Under U.S. tax law, “Section 179” is a provision that allows a business to deduct (i.e. “expense”) the cost of certain qualifying property in the year it is placed in service — rather than capitalizing the cost and writing it off gradually through depreciation over many years.

Ordinarily, most machinery or equipment would be subject to depreciation (for example, over 5 or 7 years, using the Modified Accelerated Cost Recovery System, MACRS). Section 179 lets you “front-load” that deduction, within limits, so you get more tax benefit right away.

Because the tax code also provides bonus depreciation (or “special depreciation allowances”), many businesses combine Section 179 and bonus depreciation to immediately write off 100% of the cost in the first year, provided certain rules are satisfied.

Why Forklifts, Sideloaders, Piggyback Forklifts and Material-Handling Equipment Qualify

Forklifts, lift trucks, warehouse racking, conveyors, loading dock equipment, sideloaders, piggyback forkliftss and similar material-handling machinery are generally tangible property used in business operations. Because they are “property used in a trade or business,” they often qualify for Section 179 expensing.

Key points:

1. New or used are both eligible (if “new to you”)
   The equipment doesn’t necessarily need to be brand new — a used forklift may qualify, as long as it was not previously in your books and is used predominantly for business purposes.
2. Business use requirement
   The forklift must be used more than 50% for business. If there’s any personal or non-business use, you must allocate accordingly.
3. “Placed in service” in the tax year
   The purchase (or financing) must occur, and the equipment must be ready to use (i.e. installed, operational) by December 31 of the tax year in question.
4. Within overall limits
   There are ceilings to how much total Section 179 deduction you can take in a year. Also, if your total qualifying purchases exceed a threshold, the deduction begins to phase out.

Thus, for many businesses purchasing related equipment, Section 179 (plus bonus depreciation) offers a way to deduct large capital outlays immediately, rather than stretching them over years.

How the Deduction Works in Practice (Example)

To illustrate, let’s run through a hypothetical scenario. (This is illustrative only; consult your tax advisor for your numbers.)

• Your business buys new equipment for $100,000 in 2025.
• You use it 100% for business.
• You have not met the Section 179 cap, and your total qualifying equipment purchases are below the phase-out threshold.

Step 1: Elect Section 179
You apply Section 179 to deduct, say, the full $100,000 (or a portion, depending on your other asset purchases and your taxable business income).

Step 2: Bonus Depreciation
Because Bonus Depreciation is 100%, any remaining basis (if any) may also be deducted immediately, essentially allowing a full first-year expensing.

Result:
You deduct the full $100,000 in 2025, reducing your taxable income (and your tax liability) in that year, instead of spreading depreciation over 5–7 years under MACRS.

Without Section 179 + bonus depreciation, you might have been limited to a smaller first-year depreciation (e.g. a fraction under MACRS), with the balance spread over future years.

Imagine your tax rate is 25%. That $100,000 deduction saves you $25,000 in taxes now (assuming you have sufficient taxable income). And because you got the deduction sooner, you keep more of that cash to reinvest in operations, maintenance, or additional equipment.

Benefits of Using Section 179

Here are the main advantages:

1. Immediate tax relief
   Rather than waiting years to depreciate equipment, you can significantly reduce your tax burden in the year of purchase. That’s cash you can use earlier.
2. Improved cash flow
   Because your tax liability is lower, you retain more liquidity to invest back into operations.
3. Incentive to modernize/upgrade fleets
   The tax code is encouraging capital investment — making it more financially compelling to replace older, less efficient forklifts.
4. Simplicity & flexibility
   You choose how much of your eligible purchases to expense under Section 179 (i.e. you don’t have to take the maximum).
5. Used equipment qualifies
   You can apply Section 179 to used forklifts, terminal tractors or container handlers, which helps small or growing operations invest more affordably.
6. Stacking with bonus depreciation
   Because bonus depreciation is 100% in 2025, you can often deduct the entire cost, even beyond the Section 179 cap (subject to rules).

Things to Watch Out For / Potential Risks

While Section 179 offers a strong incentive, there are pitfalls or constraints to be aware of:

• Income limitation
  Your Section 179 deduction cannot exceed your business’s taxable income from active operations. If you don’t have enough income, unused deduction may carry forward.
• Phase-out / cap on total purchases
  If your total qualifying purchases exceed the phase-out threshold, your Section 179 deduction is reduced.
• Recapture rules
  If your business usage of the equipment falls below 50% in later years, or if you sell the equipment prematurely, some of the deduction may be “recaptured” (i.e. added back to income) in those later years.
• State conformity
  Some states do not fully conform to the federal Section 179 and bonus depreciation rules. You might not get the same benefit on your state tax return. (Always check your state laws.)
• Proper documentation
  You need to maintain good records: purchase invoices, installation, date placed in service, percentage of business use, logs, etc. The IRS may ask for proof.
• Mind the year-end timing
  To qualify, the equipment must be placed in service by December 31. Delays in delivery, installation, or setup could jeopardize eligibility for the tax year.

We always recommend you consult your own tax professional to ensure you receive all the benefits of Section 179 and that your business qualifies for the benefits.

Visit our website to see our selection of new and used forklifts, terminal tractors and container handlers. For more information or pricing, contact us at 804-233-0051.

Sit-down rider forklift certainly do the mainstay of the lifting in most material handling and storage operations. But there are many times when an electric pallet jack or an electric walkie-rider can do the same job, at significantly reduced costs. Below are some the situations you may want to consider and electric pallet jack in lieu of a traditional sit-down forklift:

An electric pallet jack can be a better choice than a forklift in several situations, especially when the task doesn’t require the lifting height or heavy-duty capacity of a forklift. Here are some common scenarios:

• Loading and unloading trucks – Pallet jacks are compact and easy to maneuver in tight trailer spaces where a forklift may not fit.

• Short-distance transport – Moving pallets across a warehouse floor, staging area, or production line is often faster and more efficient with a pallet jack.

• Tight aisles or crowded spaces – Their smaller size makes them ideal for operations with narrow aisles or dense storage layouts.

• Lighter loads – For standard pallets under about 4,500–6,000 lbs (depending on model), pallet jacks are sufficient and more economical.

• Lower cost and maintenance needs – If lifting to racking heights isn’t necessary, using a pallet jack avoids the higher operating costs of a forklift.

• Delivery applications – Many delivery trucks carry electric pallet jacks to move product from the truck into customer locations where forklifts aren’t available.

In short, if the job is ground-level, lower weight, and in tight or mobile settings, an electric pallet jack is usually the more practical choice.

And a nice compromise between an electric pallet jack and sit-down rider is an electric walkie rider, which gives the operator a choice between walking behind the unit, or riding on a small platform. Below are some of the conditions that might warrant a walkie-rider over a traditional electric forklift:

both electric walkie pallet jacks (traditional) and electric rider pallet jacks are designed for moving loads at ground level, but each has strengths depending on the application. Here’s when a rider pallet jack would be preferred:

When to Choose an Electric Rider Pallet Jack

• Longer travel distances – Rider jacks allow operators to stand or ride on the unit, reducing fatigue compared to walking behind for extended runs across large warehouses or distribution centers.

• High-throughput operations – They’re faster than walkies, making them ideal in environments with heavy pallet movement and frequent trips.

• Cross-docking and staging – Perfect for quickly shuttling pallets between docks, staging areas, or production lines.

• Operator comfort & productivity – Standing platforms and ergonomic controls improve operator comfort on long shifts, which boosts efficiency.

• Larger facilities with wide aisles – Their speed and ride-on design are most beneficial where space allows for safe maneuvering.

When a Walkie Pallet Jack is Better

• Short hauls or tight spaces – Walkies are more compact, easier to turn in narrow aisles, and better for confined spaces like inside trucks.

• Occasional or light-duty use – Walkies are more economical for operations that don’t need constant pallet movement.

In short:

• Rider pallet jacks = speed, long distances, and productivity.

• Walkie pallet jacks = tight spaces, short distances, and lower cost.

Here's a chart to help you see the differences side-by-side:

Electric Walkie vs. Electric Rider Pallet Jack

Quick takeaway:

• Choose a walkie if your work is mostly short-haul, tight-space, or cost-conscious.

• Choose a rider if your facility requires long-distance travel, speed, and operator comfort.

Now lets take a quick look at the benefits of choosing an electric pallet jack or electric walk-rider over a traditional sit-down forklift. The obvious initial benefit is the purchase price. You can purchase several electric pallet jacks or walkie-riders for the initial purchase price of man sit-down rider models. But the benefits extend beyond that to include:

Benefits of Electric Pallet Jacks vs. Sit-Down Rider Forklifts

• Lower cost – Purchase price, maintenance, and operating expenses are generally much lower.

• Compact size – Easier to maneuver in tight spaces like trailers, small warehouses, or congested aisles where forklifts may struggle.

• Ground-level efficiency – Ideal for moving pallets across floors without needing lift height.

• Ease of use – Simple controls and less operator training required compared to forklifts.

• Lower risk of damage – Less likely to cause racking or product damage since they only lift to a few inches off the ground.

• Reduced fatigue – Electric power reduces strain compared to manual pallet jacks, while still being lighter and easier to handle than forklifts.

• Flexibility in delivery – Commonly used on delivery trucks for final-mile pallet movement where forklifts aren’t practical.

• Safety – Operates at lower speeds than forklifts, lowering the risk of severe accidents in high-traffic areas.

In short: Electric pallet jacks are the better option for cost savings, tight spaces, ground-level moves, and delivery applications, while sit-down forklifts are needed for heavier loads and high stacking.

Benefits of an Electric Walkie-Rider Pallet Jack vs. a Sit-Down Rider Forklift

• Faster ground-level transport – Walkie-riders are designed for quickly moving pallets across long distances, making them more efficient than forklifts for horizontal travel.

• Lower operating costs – Purchase price, maintenance, and energy costs are typically lower than a sit-down forklift.

• Higher productivity in staging and cross-docking – Ideal for dock-to-dock pallet movement, order staging, and high-throughput operations where lift height isn’t required.

• Operator convenience & reduced fatigue – With a ride-on platform, operators save energy compared to walking, while still avoiding the full climb in/out motion of a sit-down forklift.

• Maneuverability in tighter areas – More compact than forklifts, making them easier to handle in congested aisles or loading docks.

• Lower damage risk – Because they lift only a few inches off the ground, there’s less chance of damaging racks, overhead structures, or stacked loads.

• Safety advantages – Slower operating speeds and a lower center of gravity reduce the severity of potential accidents compared to sit-down forklifts.

• Final-mile flexibility – Common in large distribution centers and delivery operations where pallets need to be moved quickly without high stacking.

In short:

• Walkie-riders excel at high-speed, ground-level pallet movement in large warehouses or docks.

• Sit-down forklifts are better when you need heavy lifting, stacking, or high reach.

The great news is, our team of material handling specialist can help  you select the right combination of equipment to maximize your through-put and minimize the costs of your handling and storage operations. We stock many models of electric pallet jacks, walkie-riders and sit-down models so we are able to help you configure the right combination of equipment for each facet of your operations. See our line-up of UniCarriers electric pallet jacks and walkie-riders, and give us a call in Richmond Metro at 804-233-0051 for a consultation.

As more of our industry migrates towards electric forklifts, it is important to maintain your forklift batteries and chargers. Properly maintained forklift batteries and chargers will:

• Perform better on a daily basis by holding charges longer and maximizing output
• Last longer! By maintaining your batteries and chargers to manufacturer's recommendations, you ensure the longest life possible
• Be safer to work around. Poorly maintained batteries and chargers can present a danger to those working near or on them

This month we provide some tips to help you get the most out of your forklift's batteries and chargers.

Battery Maintenance Tips

1. Charge Properly

   • Only charge when the battery is between 20–30% capacity (don’t top off during shifts).

   • Always allow a full charge cycle—avoid interrupting mid-charge unless absolutely necessary.

2. Maintain Proper Water Levels

   • Check electrolyte levels weekly, and top off with distilled water after charging if needed.

   • Never overfill; it can cause overflow during charging.

3. Keep Batteries Clean

   • Regularly clean the battery case and terminals with a damp cloth or baking soda solution (neutralizes acid residue).

   • Corrosion or dirt buildup can lead to energy loss or safety hazards.

4. Equalize Charges

   • Perform an equalization charge (a longer charge to balance cell voltage) weekly or per manufacturer’s recommendation to prevent sulfation and extend life.

5. Inspect for Damage

   • Look for cracks, bulges, corrosion, or leaks.

   • Tag and remove damaged batteries from service immediately.

6. Monitor Temperature

   • Keep batteries in a cool, dry place. Overheating during charging can reduce battery lifespan.

   • Avoid exposing batteries to extreme temperatures (ideal range: 60–80°F).

Charger Maintenance Tips

1. Use the Correct Charger

   • Always use the manufacturer-recommended charger for the specific battery type and voltage.

2. Inspect Cables & Connectors

   • Check for frayed wires, loose connections, or melted plugs regularly.

   • Damaged connectors can cause poor charging or fire hazards.

3. Keep Chargers Clean & Ventilated

   • Ensure chargers are free of dust and debris and have proper airflow to avoid overheating.

4. Don’t “Opportunity Charge”

   • Charging during short breaks or lunch can shorten battery life unless the battery is designed for it (like lithium-ion models).

5. Log Charging Activity

   • Keep a charging log or use battery management software to track usage and detect early signs of trouble

Bonus Tip:

Training operators and technicians on proper battery handling and safety procedures is key to avoiding damage and extending battery and charger life.

Learn more about Training by AM Davis and visit our Forklift Batteries and Chargers page to learn more about our products. For a free consultation, please contact us at 804-233-0051.