Tax Resources

Section 179 Tax Deduction

Industrial equipment purchases may qualify for immediate expensing under Section 179. Use this calculator to estimate your 2026 tax savings.

2026 Section 179 Calculator

Equipment Purchase Amount ($)

Estimated Tax Rate (%)

2026 Limits: Section 179 deduction cap: $1,280,000 · Phase-out threshold: $3,200,000 · Bonus depreciation: 20%. This calculator is for estimation only. Consult your tax advisor for specific guidance.

What is Section 179?

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and software placed in service during the tax year, rather than depreciating it over several years.

For 2026, the deduction limit is approximately $1,280,000 with a phase-out beginning at $3,200,000. Additionally, 20% bonus depreciation applies to equipment not covered by the Section 179 limit (down from 40% in 2025 per the TCJA step-down schedule, drops to 0% in 2027 unless Congress acts). Both new and used equipment qualify. Confirm exact limits at IRS.gov or with your tax advisor.