Section 179 Calculator

Maximize Your Equipment Investment with IRS Section 179

At FPG, we’re here to help you grow—and that includes helping you understand how to get the most value from your equipment purchases.

One powerful tool? The IRS Section 179 deduction.

This tax incentive allows businesses to write off the full purchase price of qualifying equipment in the same year it’s placed in service, rather than depreciating it over time. That means you can invest in the tools your business needs today—and get rewarded for it when tax season rolls around.

Section 179 & Bonus Depreciation — Current Rules

• Section 179 limit: Up to $2,500,000 expensed on qualifying new or used equipment.

• Phase-out begins: $4,000,000 in total qualifying purchases (fully phased out at $6,500,000).

• Bonus depreciation: 100% for qualified property placed in service after Jan 19, 2025 (new or used, first use by the taxpayer).

• Transitional window (Jan 1–Jan 19, 2025): 40% bonus (elective).

• SUV cap (6,000–14,000 lbs GVWR): Section 179 limited to ~$31,300 (business-use % still applies).

Always consult your tax advisor. Eligibility, recapture, and income limits may apply.

Why the changes?

OBBBA raised the Sec. 179 cap to $2.5M with a $4M phase-out threshold and reinstated 100% bonus for qualified property placed in service after Jan 19, 2025.

• SUV cap reference: 2025 inflation figure commonly cited at $31.3k.
• Aircraft/long-production property: 100% bonus also applies when qualified. 

Want to estimate your potential savings? Use our easy Section 179 calculator to run the numbers and see how much your business could benefit.

Important Note: Credit and equipment eligibility apply. This overview does not assume your business will qualify for Section 179 benefits. The amount of prior depreciation taken may affect your eligibility. Always consult your tax advisor to understand how Section 179 applies to your specific situation. Equipment must be purchased and placed in service by January 1, 2026.