Purchase Equipment in 2026 with Your Section 179 Tax Benefit
Begins: 01/01/2026
Ends: 12/31/2026
Maximize your tax benefits with a tax deductible equipment purchase in 2026. Find out how to benefit from Section 179.
Section 179 Allowance
- Any new or used equipment purchased in 2026 can be deducted in full (up to a total of $2,560,000) in year 1 if the total amount of applicable assets purchased does not exceed $4,000,000.
- Once the $4,090,000 (cost) threshold is surpassed, the Section 179 allowable deduction ($2,500,000) will begin to be phased out and will be totally phased out at $6,650,000 (cost) of current year additions.
- The increased allowance applies to units contracted for and put into service through December 31, 2026. The balance of equipment investment above $4,090,000 is eligible for Standard MACRS depreciation.
Bonus Depreciation
The applicable bonus depreciation percentage will now be 100% for property placed in service after January 19, 2026. Bonus depreciation applies to new and used equipment.
Example of an Equipment Purchase of $25,000:
| Purchase Price | $25,000 |
| 1st year Section 179 allowance | $2,560,000 |
| Total 1st year deduction | $25,000 |
| Potential 1st year tax savings (21% Tax Bracket) |
$5,250 |
| After Tax Cost of Equipment | $19,750 |
*Please consult your own tax advisor regarding the application of the tax laws to your specific situation.
Interested in learning more about tax deductible equipment purchases? Visit section179.org to learn more
