Section 179 Tax Deduction Calculator
Estimate your potential tax savings when you purchase qualifying equipment this year.
What is Section 179?
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year. This means that if you buy or lease a piece of qualifying equipment, you can deduct the full purchase price from your gross income.
For the 2025 tax year, the Section 179 deduction limit is $1,250,000, with a spending cap of $3,130,000. This means businesses can deduct the full cost of equipment up to $1,250,000.
Qualifying Equipment
- New and used construction equipment
- Agricultural machinery and tractors
- Vehicles over 6,000 lbs GVWR
- Off-the-shelf software
- Office furniture and equipment
Disclaimer: This calculator is for estimation purposes only. Tax laws are subject to change, and individual circumstances vary. Please consult with a qualified tax professional or CPA before making any financial decisions based on these estimates.