As the final quarter approaches, many businesses are looking at equipment that could help them increase production, replace an aging machine, or work more efficiently.
If a purchase is on your list, now is a good time to check delivery timelines, estimate the monthly payment, and discuss potential tax benefits with your advisor.
Equipment generally must be placed in service during the tax year to qualify for that year’s Section 179 deduction.
Section 179 business income limitations
The total amount you can deduct under Section 179 is subject to a dollar limit and a business income limit, each of which applies to the individual owner, not the business entity. Business income limitations are as follows:
- The maximum deduction for 2026 (taxes filed in 2027) is $2,560,000 of expenditures.
- The beginning phaseout starts at $4,090,000. These amounts adjust for inflation each year.
- Only certain types of property may be deducted. Talk with your tax advisor
SCL Equipment Finance can help you explore financing options early, so you can make a decision with a clear picture of the cost and timing. Send us the equipment quote, and we’ll help you get started.