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Section 179 + bonus depreciation calculator

See your first-year tax write-off and dollar-level savings on a 2024, 2025, or 2026 equipment purchase. No email required.

Your purchase

Your numbers

Enter your equipment cost and business income to see your tax savings.

How this works

Section 179 lets a business deduct the full purchase price of qualifying equipment in the year you buy it, up to the annual cap. Above the cap, bonus depreciation kicks in (currently phasing down).

Combined effect: Section 179 first up to the limit, then bonus depreciation on the remainder. The result is your first-year deduction. Multiply by your marginal rate = real cash savings.

The fine print

  • Annual 179 limit (2026): $1,250,000 deduction, phasing out dollar-for-dollar above $3,130,000 of total equipment purchased.
  • Bonus depreciation: 60% in 2024, 40% in 2025, 20% in 2026 — phasing to 0% in 2027 unless Congress acts.
  • Qualifying equipment: most tangible business property — trucks (with weight rules), construction equipment, machinery, computers. SUVs over 6,000 lbs have a separate cap.
  • "Placed in service": the deduction goes to the year the equipment is delivered and in service, not the year you bought it. If you order in December and take delivery in January, it's a next-year deduction.
  • This is not tax advice. Talk to your CPA. State rules vary widely — some states (like CA, NJ, PA) decouple from federal 179 limits.

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