What is Section 179 deduction?

Last updated May 2026 · Reviewed by David Chen
Quick Answer

Section 179 is a U.S. tax provision allowing businesses to deduct the full purchase price of qualifying equipment placed in service the same year, up to $1,160,000 in 2026. Eligible equipment includes machinery, vehicles over 6,000 lbs, computers, software, office furniture. Financed equipment qualifies — deduct full cost, pay over time.

Key Details

  • 2026 deduction limit: $1,160,000
  • Spending cap: $2,890,000
  • Equipment must be placed in service by Dec 31
  • Financed equipment qualifies
  • Bonus depreciation: 60% in 2026
  • New AND used equipment eligible
Answer by David Chen — Senior Business Funding Editor
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