Under the OBBBA, 100% first-year bonus depreciation is permanent for qualified property placed in service on or after Jan 20, 2025, with IRS Notice 2026-11 (released Jan 14, 2026) providing interim rules. The Section 179 expensing limit rose to $2.5 million with a $4 million phase-out threshold.
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100% bonus depreciation is permanent for 2026; Section 179 cap now $2.5M
Why this matters for founders
Startups buying equipment, computers or vehicles in 2026 can fully expense them in year one — time large capital purchases to the tax year where the deduction helps cash flow most.
Source: RSM US
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