: For 2026, these benefits are expected to apply to businesses spending less than $6.65 million annually on equipment. 2. Bonus Depreciation: No Spending Limits
: You can deduct up to $2.5 million in qualifying equipment.
If your equipment costs exceed the Section 179 limit, or if your business is operating at a loss, (Section 168(k)) is your next best tool. Bonus depreciation – Overview and FAQs | Thomson Reuters buying equipment for business tax
Investing in new or used equipment is a significant move for any business. Beyond the operational boost, the tax benefits can drastically reduce your upfront costs by allowing you to write off the full purchase price in the first year.
Here is how you can leverage current tax laws like Section 179 and bonus depreciation to your advantage. 1. The Power of Section 179 Expensing : For 2026, these benefits are expected to
: Unlike other deductions, Section 179 cannot exceed your business's taxable income; it cannot be used to create a net loss.
Section 179 is designed for small to mid-sized businesses, allowing you to deduct the full purchase price of qualifying equipment—whether bought or financed—immediately. If your equipment costs exceed the Section 179
Maximizing Your Business Tax Savings on Equipment Purchases (2025-2026)