06/17/2026
Bought equipment for the business this year? You may be able to deduct the full cost the year you buy it — not spread out over many years.
In plain English: instead of slowly writing off a big purchase over 5 or 7 years, two tools let you take it all up front.
Section 179 lets you elect to expense qualifying purchases the year you buy them, up to a limit (~$2.56M for 2026, more than enough for almost any small business).
Bonus depreciation is back at 100% permanently under the One Big Beautiful Bill Act (OBBBA) signed July 2025 – for qualifying property placed in service on or after January 19, 2025. For 2026 equipment, that's huge.
A lot qualifies: machinery, computers, office furniture, certain software, and vehicles over 6,000 lbs GVWR (with a separate cap for heavy SUVs around $31,300 in 2026).
Real impact: a $40,000 qualifying purchase, at a 32% marginal rate, can cut your federal tax bill by roughly $12,800 – in the year you buy.
The catch is timing, documentation, and choosing the right tool for the right purchase. Section 179 has business-income limits. Bonus depreciation does not, but state tax treatment varies (California, for example, doesn't conform).
If you've got a purchase on the horizon for the back half of the year, it's worth knowing whether and how it qualifies before you pull the trigger.
