Section 179:
The Big Tax Break for Small Business

Thanks to Section 179 of the IRS tax code, upgrading equipment may cost less than you think. Rather than taking a depreciation tax deduction over a number of years, you can deduct the full cost of qualifying equipment the year you buy it and put it into service.

Quick facts on Section 179 savings

When you file your taxes, you can deduct your equipment costs from your profits. Talk to your tax advisor about the facts and benefits which include…

Maximum deduction of $2,560,000 for 2026, phasing out once total equipment purchases exceed $4,090,000
Ability to deduct just about any type of machinery and equipment used for business
Applies equally to equipment that’s fully or partially financed
Equipment must be purchased and placed in service by December 31, 2026
100% bonus depreciation is also available for qualifying equipment acquired after January 19, 2025
The Section 179 deduction can’t exceed your business’s taxable income for the year

You can find the most recently published rules for the Section 179 deduction in IRS Publication 946.

Learn more about common Section 179 mistakes to avoid in our blog.

As with any tax rules, you should consult with your CPA or Tax Advisor to determine applicability to your specific equipment purchase and business situation.

Section 179 Savings Calculator

Estimate your 2026 tax savings on qualifying equipment.

Equipment cost

Your tax bracket

Section 179 deduction$0
Bonus depreciation (100%)$0
Estimated tax savings$0
Net cost after tax savings$0

Estimate only, using the 2026 Section 179 limit of $2,560,000, which phases out dollar for dollar once purchases exceed $4,090,000. Equipment must be placed in service by December 31, 2026. The Section 179 deduction cannot exceed your business's taxable income. Excludes state taxes. Consult your CPA or tax advisor about your situation.

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