2018 Deduction Limit = $1,000,000
This deduction is good on new and used equipment, as well as off-the-shelf software. To take the deduction for tax year 2018, the equipment must be financed or purchased and put into service between January 1, 2018 and the end of the day on December 31, 2018.


2018 Spending Cap on equipment purchases = $2,500,000
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true “small business tax incentive”.


Bonus Depreciation: 100% for 2018
Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. The Bonus Depreciation is available for both new and used equipment.


The above is an overall, “birds-eye” view of the Section 179 Deduction for 2018. For more details on limits and qualifying equipment, please visit



Cost of Equipment:

Section 179 Deduction:

Bonus Depreciation:

100% in 2018

Normal First Year Depreciation:

Total First Year Deduction:

Tax Savings on Equipment Purchase:

(Assuming a 35% tax bracket)

Lowered Cost of Equipment after Tax Savings:


If you have any questions regarding the Section 179 tax deduction or would like more information, please contact us at [email protected]