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Section 179 Expensing

All active businesses

Category

Business

Type

Business

2025 Limit

Up to $1,220,000; phases out over $3,050,000

2026 Limit

Section 179 was increased under recent law. For 2026, use updated planning framing of an approximately $2.5M+ deduction limit and approximately $6.5M+ phase-out threshold, indexed and subject to annual adjustment.

IRC Reference

IRC § 179

Eligibility

All active businesses

Notes / Description

Immediate expensing of qualifying equipment, machinery, and software. Cannot create a business loss.