Section 179 is the area of the IRS tax code created to help businesses reduce their tax liability. Under Section 179 limits established by THe Tax Cuts and Jobs Act, businesses that purchase qualifying equipment may immediately depreciate up to $1,080,000 of their new or used equipment costs.

In addition, businesses acquiring qualifying equipment may utilize an additional 100% BONUS depreciation allowance.

Additional depreciation for both new and used qualifying equipment is allowed with the use of the standard first-year depreciation allowance (under MACRS rules, 20% for equipment with a 5-year class life as defined in IRC Section 168).

Section 179 is an excellent incentive for businesses to purchase, finance, or lease equipment this year.