Section 179
Finance Equipment Today. Potentially Deduct the Cost of Qualifying Equipment This Tax Year.
Section 179 may allow eligible businesses to deduct qualifying equipment costs in the year the equipment is placed in service, while financing can help preserve working capital.
What Is Section 179?
Section 179 allows eligible businesses to deduct the cost of qualifying equipment purchased or financed during the tax year, subject to applicable IRS limits and requirements.
With Centra Funding, you can finance the equipment your business needs today and still potentially qualify for Section 179 benefits.
Why Finance Instead of Paying Cash
Instead of tying up valuable working capital, equipment financing lets you:
- Preserve cash for payroll, inventory, and operations
- Acquire equipment when you need it, not months later
- Potentially take advantage of Section 179 tax benefits
- Lock in predictable monthly payments
- Invest in growth without delaying purchases
2026 Section 179 Deduction Limits
For tax years beginning in 2026, eligible businesses may elect to deduct up to $2.56 million of qualifying Section 179 property. The deduction begins to phase out when the total cost of Section 179 property placed in service during the tax year exceeds $4.09 million. Other limitations, including taxable-income limits, may apply.
Eligibility depends on your specific tax situation. Consult your tax advisor to determine how Section 179 may apply to your business.
Example Scenario
Equipment Cost
You finance $100,000 in qualifying equipment for your business.
Section 179 Deduction
If eligible, your business may elect to deduct up to $100,000 under Section 179, subject to applicable limits.
Your Potential Tax Impact
Your actual tax benefit will depend on your taxable income, tax rate, and individual circumstances. Consult your tax advisor for an estimate.
Equipment That May Qualify Under Section 179
Many new and used equipment purchases may qualify. Some examples include:
- Restaurant Equipment
- Medical Equipment
- Construction Equipment
- Manufacturing Equipment
- Certain Commercial Vehicles
- Technology and Software
- Printing Equipment
- Fitness Equipment
- Agricultural Equipment
Special rules and deduction limits may apply to certain vehicles.
Section 179 FAQs
Can I finance equipment and still qualify for Section 179?
Yes. Many businesses finance equipment and may still qualify because Section 179 generally applies to qualifying equipment placed into service—not whether it was paid for in cash. Consult your tax advisor regarding your specific circumstances.
Does used equipment qualify?
Often, yes. Both new and used qualifying equipment may be eligible for Section 179, provided applicable IRS requirements are met.
Do I have to buy before year-end?
Generally, qualifying equipment must be acquired and placed into service during the applicable tax year. Simply ordering equipment before year-end may not be enough. Consult your tax advisor regarding timing requirements.
Is every business eligible?
Eligibility depends on several factors, including business income, the type of equipment purchased, and IRS rules. Your CPA or tax professional can help determine your eligibility.
How much can I save?
Actual tax savings depend on your tax bracket and business situation. Contact your CPA to discuss what makes sense for you.
