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Section 179 Deductions for Manufacturing Equipment

Section 179 allows manufacturers to deduct the full cost of qualifying equipment and software in the year of purchase, rather than depreciating over time. This powerful tax incentive can provide immediate cash flow benefits and significant tax savings for manufacturing businesses investing in new equipment, machinery, and technology.

Key Benefits of Section 179

Maximize your manufacturing equipment investments with strategic Section 179 planning and implementation.

Immediate Full Deduction

Deduct the full cost of qualifying equipment up to $1,160,000 in the year of purchase, providing immediate cash flow benefits.

Reduce Taxable Income

Lower your overall tax burden and improve cash flow by reducing taxable income in the year of equipment purchase.

Manufacturing Equipment Eligible

Qualifying property includes manufacturing equipment, machinery, computers, software, and business vehicles.

No AMT Impact

Section 179 deductions typically don't trigger alternative minimum tax (AMT) for most manufacturing businesses.

Combine with Bonus Depreciation

Can be combined with bonus depreciation for maximum tax benefits on qualifying equipment purchases.

Qualification Requirements

Understanding the requirements ensures you maximize your Section 179 benefits while maintaining compliance.

Equipment Requirements

  • Equipment must be purchased and placed in service during the tax year
  • Equipment must be used more than 50% for business purposes
  • Qualifying property includes manufacturing equipment, machinery, computers, software, and business vehicles
  • Total equipment purchases cannot exceed $2,890,000 (2023 phase-out threshold)
  • Equipment must be new or used (not leased)

Our Process

1

Equipment Analysis

Comprehensive analysis of your equipment needs and Section 179 qualification requirements.

2

Strategic Timing

Strategic timing of equipment purchases to maximize deduction benefits and tax savings.

3

Documentation

Proper documentation and record-keeping for Section 179 claims and compliance.

4

Integration

Integration with overall tax strategy and business planning for maximum benefits.

Ready to maximize your Section 179 deductions?

Our manufacturing tax experts will help you identify qualifying equipment, optimize timing, and maximize your tax savings through strategic Section 179 planning.