Updated in September 2026.
Summary
- Section 179 is a federal tax incentive that allows eligible businesses to deduct the cost of qualifying equipment and software in the year it is placed into service, subject to applicable limits and requirements.
- For tax year 2026, the Section 179 deduction limit is $2,560,000, with a spending cap of $4,090,000. Qualifying purchases may also be eligible for 100% bonus depreciation.
- Businesses considering equipment purchases before December 31, 2026, should consult with their tax advisor to determine eligibility and potential tax benefits.
Businesses can estimate potential savings using the OCS Section 179 Calculator and learn more through OCS’s Section 179 educational resources.
You Know the Drill… But Let’s Talk About 2026
If you’ve worked with OCS for any length of time, you’ve probably heard us talk about Section 179.
For many of our customers, it’s become a familiar part of year-end planning. They know that if equipment purchases are already on the horizon, Section 179 may provide an opportunity to potentially reduce taxable income while investing in the equipment their business needs to grow and thrive.
Simply put, they know the drill.
Still, every year brings updated limits, changing business goals, and new business owners who may not be familiar with how Section 179 works. That’s why we continue to share annual updates and encourage customers to start planning now before year-end.
Whether you’re a long-time equipment buyer or exploring Section 179 for the first time, understanding the 2026 limits can help you make more informed decisions as December approaches.
What Is Section 179?
At its core, Section 179 is designed to encourage businesses to invest in themselves.
Rather than depreciating eligible equipment over several years, qualifying businesses may be able to deduct the full purchase price of eligible equipment during the year it is placed into service. Depending on the circumstances, qualifying equipment may be purchased outright, financed, or leased.
This article provides a high-level overview focused on the 2026 tax year. If you’re looking for a deeper explanation of how Section 179 works, eligibility requirements, qualifying equipment, financing considerations, and frequently asked questions, visit our Section 179 Essentials for Equipment Financing resource center, our comprehensive guide to understanding Section 179.
For now, let’s look at what’s changing and what businesses should know for 2026.
2026 Section 179 Limits
For 2026, the updated limits are:
As always, businesses should work with their accountant or tax advisor to determine how these limits apply to their specific situation.
What Types of Equipment May Qualify for Section 179?
While eligibility ultimately depends on IRS guidelines and your unique circumstances, qualifying property may include:
- Construction equipment
- Landscaping equipment
- Manufacturing equipment
- Agricultural equipment
- Commercial vehicles
- Computers and software
- Office furniture and equipment
- Technology upgrades and other business assets
If you’re unsure whether a planned purchase may qualify, your tax advisor can provide guidance specific to your business.
Why Businesses Continue to Take Advantage of Section 179
For many companies, Section 179 isn’t just about taxes. It’s about finding ways to invest in growth while maintaining financial flexibility.
Preserve Working Capital
Many businesses prefer to keep cash available for operating expenses, payroll, inventory, expansion initiatives, and unexpected opportunities. Equipment financing combined with Section 179 may help support that strategy.
Acquire Equipment When You Need It
Waiting to save for a large equipment purchase can delay productivity improvements and growth opportunities. Financing allows many businesses to put equipment to work immediately.
Support Growth Initiatives
Whether you’re taking on larger projects, serving more customers, or improving operational efficiency, having the right equipment in place can help position your business for continued success.
Potential Tax Advantages
For qualifying businesses, Section 179 may provide significant tax benefits that improve the economics of an equipment purchase.
Why Planning Early Matters
Every year, some businesses wait until the final weeks of December to evaluate their Section 179 opportunities.
The challenge is that equipment availability, delivery schedules, installation timelines, and financing approvals can all affect whether equipment is placed into service before year-end; not just purchased but put to work.
If taking advantage of Section 179 aligns with your tax strategy, starting the conversation now can help you avoid unnecessary stress as we approach a new year.
The earlier you begin planning, the more options you’ll typically have for your business.
Estimate Your Potential Tax Savings
One of the easiest ways to start evaluating Section 179 is by running the numbers.
OCS offers a free Section 179 Calculator that can help estimate potential tax savings based on your planned equipment investment.
While the calculator is intended as an educational resource and not tax advice, it can provide a helpful starting point as you evaluate your options with your accountant or tax advisor.
You can also explore additional educational information, FAQs, and resources through the OCS Section 179 resource center.
What Should You Do Next?
Talk with Your Tax Advisor
Every business situation is different. Your accountant or tax advisor can help determine whether Section 179 or bonus depreciation may benefit your organization.
Identify Upcoming Equipment Needs
Consider purchases that could improve productivity, expand capacity, reduce downtime, or support growth initiatives.
Explore Financing Options
Financing can help make equipment acquisition more manageable while preserving working capital for other priorities.
Start Before the Year-End Rush
Planning ahead can help ensure equipment is delivered, installed, and placed into service before December 31.
How do you get started with Section 179 Planning?
If you’re planning equipment purchases before year-end, now is the time to evaluate your options.
At OCS, we help businesses acquire the equipment they need through flexible financing solutions designed to support growth while preserving valuable cash flow.
A few simple steps can help you get started:
- Use the Section 179 Calculator to estimate potential savings.
- Speak with your tax advisor about your specific situation.
- Connect with an OCS financing specialist to discuss equipment financing options.
- Complete qualifying equipment purchases before December 31, 2026, if taking advantage of Section 179 makes sense for your business.
Frequently Asked Questions About Section 179
Disclaimer: Oakmont Capital Services does not provide tax, legal, or accounting advice. This article is intended for informational purposes only. Businesses should consult a qualified tax professional regarding their individual circumstances and eligibility for Section 179 or any other tax benefit.
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