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Section 179 and bonus depreciation

Equipment placed in service by December 31 is deductible this year.

Financing it does not reduce the deduction. You deduct the cost of the machine for 2026 and pay for it monthly, which is the whole reason equipment moves in the fourth quarter.

First-year deduction estimator 2026 tax year
$
Section 179 deduction$400,000
Bonus depreciation on the balance$0
Total first-year deduction$400,000
Net cost after tax savings$272,000
Where the money goes
Tax savings $128,000 Your net cost $272,000

Section 179 caps at $2,560,000 for 2026 and phases out dollar-for-dollar above $4,090,000 in total equipment placed in service. Bonus depreciation is 100% on qualified property. This assumes the machine is your only qualifying purchase this year.

Applies to a purchase or a $1 buyout structure. On a fair market value lease you expense the rental payments instead, a different mechanism with a different answer. We are not tax advisors; confirm any treatment with your CPA.

Industries

Seven sectors, close to thirty years.

Equipment-intensive sectors where we coordinate multi-vendor transactions and match payment structures to business cycles. If your equipment isn't listed, it's still worth a call.

Stainless steel process vessels in a food and pharmaceutical production hall

Multi-vendor transactions

A production cell is rarely one purchase order. The machine, the controls, the material handling, the integration, and often a used component sourced separately.

All of it can be structured as a single financing rather than several separate approvals, any one of which could hold up the rest. That coordination is most of what close to thirty years buys you.

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