With Section 179, you can deduct up to $1,080,000 of qualifying equipment in the year you acquire and put it into service. Bonus depreciation can then be used to deduct any remaining amount over the Section 179 limit.
Beginning next year, enhanced bonus depreciation begins to phase out, decreasing from 100% in 2022 to 80% in 2023. Then in 2024, the rate drops to 60%. In 2025, bonus depreciation is scheduled to return to 40%. To take full advantage of enhanced bonus depreciation, businesses will need to acquire qualifying equipment and put it into service by December 31st.
You can use our Section 179 Savings Calculator to see firsthand how taking advantage of Section 179 can help you manage your taxes. For more information, see additional Section 179 resources and FAQs below.