Section 179 Deduction 2026: How to Write Off Equipment Purchases

Last updated: October 19, 2026

Section 179 of the U.S. tax code lets businesses deduct the full purchase price of qualifying equipment in the year it’s placed in service, instead of depreciating it over several years. For 2026, the limits are higher than ever: businesses can expense up to $2,560,000 in equipment, and 100% bonus depreciation is back permanently.

That makes 2026 a strong year to buy the equipment your business needs, including used scissor lifts, boom lifts, telehandlers and excavators.

This article is general information, not tax advice. Talk to your tax professional about how Section 179 and bonus depreciation apply to your business.

Table of Contents

• 2026 Section 179 Limits
• What Equipment Qualifies?
• Section 179 vs. Bonus Depreciation
• Section 179 Example
• Deadlines and How to Claim
• Benefits for Equipment Buyers
• Why Buy Used Equipment Before Year-End
• FAQs

The One Big Beautiful Bill Act, signed in July 2025, roughly doubled the Section 179 limits starting with 2025, and the IRS adjusted them for inflation for 2026:

Above the phase-out threshold, the maximum deduction is reduced dollar for dollar. Sources: IRS Form 4562 instructions (2025) and IRS Revenue Procedure 2025-32 (2026 inflation adjustments).

Section 179 generally covers tangible business property that is:

• Used more than 50% for business
• Purchased (including financed) rather than rented
• Placed in service during the tax year, meaning delivered and ready to use
• New or used: used equipment qualifies as long as it’s new to your business

That includes most construction and material handling equipment, such as scissor lifts, boom lifts, telehandlers, forklifts, excavators, mini excavators, skid steers, wheel loaders and generators. Business vehicles, computers and off-the-shelf software can qualify too.

Both let you deduct equipment costs up front, but they work differently:

• Section 179 is an election you make asset by asset, capped at $2,560,000 for 2026, and the deduction can’t exceed your taxable business income for the year (unused amounts carry forward).
• Bonus depreciation has no dollar cap and no income limit, so it can create a loss. It applies automatically unless you elect out. Used equipment qualifies if your business hasn’t used it before.

Many businesses use Section 179 first for specific assets and bonus depreciation for the rest. With 100% bonus depreciation now permanent, most equipment buyers can write off the full cost in year one either way.

Say your company buys $150,000 of used equipment in 2026: a JLG 1055 telehandler for about $95,000, a JLG 660SJ boom lift for about $45,000 and two Genie GS-1930 scissor lifts for about $5,000 each.

Because that’s well under the $2,560,000 limit, you could deduct the full $150,000 on your 2026 return (assuming enough business income). At a 21% corporate tax rate, that would cut your federal tax bill by about $31,500. Your actual savings depend on your tax bracket and situation.

• Deadline: Equipment must be purchased and placed in service by December 31, 2026, to count for the 2026 tax year. Buying in December still qualifies if the machine is delivered and ready to use by year-end.
• Financed equipment: You can generally deduct the full purchase price even if you finance the equipment, which can make the first-year deduction larger than what you paid out of pocket.
• How to claim: Section 179 is elected on IRS Form 4562, Depreciation and Amortization, filed with your tax return.

1. Immediate expense deduction: Write off the entire cost of qualifying equipment in the year it’s placed in service, instead of spreading it over several years.

2. Better cash flow: More cash stays in your business to reinvest, hire or pay down debt.

3. Higher limits than ever: With a $2,560,000 cap and 100% bonus depreciation, nearly all small and mid-size equipment buyers can expense their full purchases.

4. Works for used equipment: Used machines qualify, so you get the full deduction on equipment that already costs far less than new.

If you’ve been planning to add or replace equipment, buying before December 31, 2026, lets you take the deduction on this year’s return. Used equipment stretches your budget further, and lead times are shorter than for new machines, which makes it easier to get equipment placed in service before year-end.

FleetNow lists thousands of inspected, ex-rental machines from rental yards across the U.S. and Canada, including scissor lifts, boom lifts, telehandlers, forklifts and skid steers. Or shop FleetNow Direct inventory.