For 2026, the Section 179 expensing limit is $2,560,000, with the phase-out beginning at $4,090,000 of qualifying property placed in service. Separately, the One Big Beautiful Bill Act made 100% bonus depreciation permanent for most qualifying property acquired and placed in service after January 19, 2025 — with no scheduled phase-out. Used together, the two provisions can let a business immediately deduct up to the full cost of capital purchases.
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2026: 100% bonus depreciation permanent, Section 179 cap $2.56M
Why this matters for founders
If you are buying equipment, machinery, vehicles, or off-the-shelf software, you can write off the full cost in year one instead of depreciating it over years — a meaningful cash-flow boost in a build-out year. Because 100% bonus depreciation is now permanent, you no longer have to rush purchases to beat a phase-out deadline, so time buys around actual business need. Coordinate Section 179 and bonus depreciation with your CPA to maximize the deduction against your taxable income.
Source: IRS.com / Section179.org
#bonus-depreciation#section-179#capital-expenditure#tax-deduction#equipment#taxes#finance#operations
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