Section 179 Tax Deduction

Pursuant to Section 179 businesses may be able to deduct from their gross income the full purchase price of qualifying equipment bought or financed during the tax year, reducing overall tax liability.

Section 179 is a useful tool for expensing equipment purchases. In 2026, the tax deduction allows businesses to write off up to $2,560,000 of qualifying equipment placed in service during the year—rather than depreciating it over many years. The deduction begins to phase out when total qualifying purchases exceed $4,090,000.

Equipment including tangible personal property used in business, computers, off-the-shelf and custom-built software, office furniture, office equipment, business-use vehicles, property attached to a building that is not a component of the building (large manufacturing equipment), and even certain improvements to non-residential buildings including fire-suppression systems, alarms and security systems, HVAC and roofing may qualify.

It’s important to consult with a tax professional or financial advisor to fully understand how Section 179 qualified financing can work best for your specific business situation. The deduction is only good for qualifying equipment purchased or financed and put into use by December 31, 2026.