Cost of Equipment
Section 179 Deduction
Normal 1st Year Depreciation
Total First Year Deduction
Cash Savings on your Equipment Purchase
(assuming a 35% tax bracket)
Lowered Cost of Equipment after Tax Savings

* Credit & equipment restrictions apply. This program does not assume your company will qualify to take advantage of the IRS Section #179 depreciation schedule which allows rapid first year depreciation of certain assets acquired. The amount of previous depreciation your company may have used may affect your ability to utilize the elections. Please consult your tax adviser or accountant for additional information. Equipment must be purchased and placed in service by 12/31/16.


The deduction limit for section 179 is now $500,000

The 2016 section 179 deduction threshold for total amount of equipment that can be purchased is now $2,000,000

Most new and used equipment, as well as some software, qualify for the section 179 deduction

50% bonus depreciation has been reinstated for the tax year 2016 and expanded through 2019

You can deduct an additional 50% of the amount over $500,000 in addition to your standard depreciation deduction.
This applies to equipment acquired and put into service during 2016 and 2017. Then bonus depreciation will phase down to 40% in 2018 and 30% in 2019.

When applying these provisions, Section 179 is generally taken first, followed by bonus depreciation