Section 179
Bonus Depreciation
for equipment
Put New Equipment to Work. put the tax code to work.
Planning to invest in your business before the end of 2026? Qualifying equipment purchased and placed in service during the tax year may be eligible for significant first-year deductions through Section 179 and 100% bonus depreciation.
Whether you’re adding a compact track loader, excavator, dozer, wheel loader, backhoe or other equipment to your fleet, now may be a good time to talk with your tax professional about how a year-end equipment purchase could benefit your business.
Yellowhouse Machinery does not provide tax, legal or accounting advice. Eligibility and tax benefits vary. Consult your qualified tax professional regarding your individual circumstances.
Make Your Year-End Investment count.
Tax incentives may be one reason to invest before year-end. The right machine for your operation is an even better one.
Yellowhouse Machinery can help you find the John Deere construction equipment you need, explore available financing options and identify machines available to go to work.
Talk to Yellowhouse about the equipment. Talk to your tax professional about the deduction.
What is Section 179?
Section 179 of the Internal Revenue Code allows eligible businesses to elect to deduct the cost of qualifying equipment in the year it is placed in service rather than recovering the cost through depreciation over multiple years.
2026 Section 179 Limits
- Up to $2,560,000
Maximum Section 179 deduction for tax years beginning in 2026. - $4,090,000
The deduction begins to phase out when the total cost of Section 179 property placed in service during the tax year exceeds this amount.
Eligibility, limitations and the amount a business can deduct depend on individual circumstances. Talk with your tax professional to determine how Section 179 applies to your business.
What is Bonus Depreciation?
Bonus depreciation is another potential way for businesses to accelerate depreciation on qualifying equipment.
Under current federal tax law, certain qualifying property acquired and placed in service after January 19, 2025 is eligible for 100% additional first-year depreciation.
That means an eligible business may be able to deduct 100% of the cost of qualifying property in the first year, subject to applicable tax rules and the business’s individual circumstances.
Section 179 and bonus depreciation aren’t the same thing. Your tax professional can help determine which provisions apply and the best approach for your business.
Can Used Equipment Qualify?
Yes, certain used equipment may qualify.
Both new equipment and certain used equipment may be eligible for accelerated depreciation, provided the equipment and transaction meet the applicable requirements.
That means your year-end equipment strategy doesn’t have to be limited to new machines.
