Section 179 IRS Tax Deduction

IRS Tax Code · Section 179

The Section 179 Tax Deduction enhances your bottom line.

Section 179 of the IRS Tax Code provides some real relief to small businesses purchasing carpet cutting machines — are you taking advantage of it?

Click here to see How much you can save with a tax deduction See the numbers for your machine →


A part of the IRS tax code, Section 179 allows businesses to deduct the full purchase price of qualifying equipment bought or financed during the tax year. This significant tax incentive is designed to encourage businesses to invest in themselves by purchasing the equipment they need to grow. Section 179 can be extremely profitable for your business, allowing you to invest in equipment, vehicles, and software while retaining more of your tax dollars.

2026 Section 179 at a glance

Updated for the One Big Beautiful Bill Act — limits are now permanent and inflation-adjusted.

$2.56M
Maximum Section 179 deduction
$2,560,000 for 2026, up from $2,500,000 in 2025
$4.09M
Phase-out threshold
Deduction shrinks dollar-for-dollar above $4,090,000 in total purchases
100%
Bonus depreciation
Now permanent, for new and used equipment

The 2025 One Big Beautiful Bill Act doubled the old $1,250,000 cap and made the higher limit permanent. U.S. companies can deduct the full purchase price of ALL qualified equipment purchases up to $2,560,000, as long as total purchases stay under the $4,090,000 phase-out threshold (fully phased out at $6,650,000).

The deduction covers both new and used equipment, and 100% bonus depreciation applies to anything above the Section 179 limit for equipment acquired and placed in service after January 19, 2025.

Deadline:Equipment must be purchased and put into service by midnight Dec 31, 2026 to count for the 2026 tax year. Keep lead times and delivery in mind.
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