TAX SAVINGS
Turn Your IT Upgrade Into a Tax Write-Off
Section 179 lets qualifying businesses deduct the full cost of new equipment and software the same year it's placed in service — instead of depreciating it over several years. See what a server refresh, new workstations, or a security upgrade could save you before the deadline.
This year's deadline has passed — ask us about planning for next year.
HOW IT WORKS
What Is Section 179?
Section 179 of the IRS tax code lets businesses deduct the full purchase price of qualifying equipment and off-the-shelf software bought or financed during the tax year — rather than depreciating it a little at a time over its useful life. For a business planning a hardware refresh, that can mean a meaningfully lower effective cost on the same purchase. It's not a Techworks program — it's federal tax law — but it directly affects how you should time and structure an IT investment, which is exactly where we can help.
TAX SAVINGS
See What Section 179 Could Save You
Estimate your first-year write-off and cash savings on new IT equipment, servers, and software — updates instantly as you type.
Estimate Your Savings
Figures reflect the 2026 Section 179 deduction limit of $2,560,000, phasing out above $4,090,000. Equipment must be purchased and placed in service by December 31, 2026.
- Section 179 Deduction
- $0
- Bonus Depreciation (100%)
- $0
- Normal 1st-Year Depreciation
- $0
- Total First-Year Deduction
- $0
Estimated Cash Savings
$0
Effective net cost of equipment: $0
This calculator provides an estimate for planning purposes only and is not tax, legal, or accounting advice. Actual eligibility and savings depend on your specific tax situation, total qualifying purchases, and net business income — consult your tax advisor before making a purchase decision.
Deduction limits and figures referenced from Section179.org.
WHAT QUALIFIES
Is Your Equipment Eligible?
Most tangible business IT equipment and off-the-shelf software qualifies — as long as it's purchased (or financed) and placed in active use by the deadline.
Equipment & Software That May Qualify
The kind of IT investments we help clients plan, sized to qualify.
- Servers and server room infrastructure
- Desktops, laptops, and workstations
- Networking equipment — switches, routers, firewalls
- Security appliances and endpoint protection hardware
- Business phone and unified communications systems
- Off-the-shelf software (including certain SaaS/licensing costs)
- Backup and business continuity hardware
- Office technology placed into service by the in-service deadline
2026 Section 179 Quick Reference
- $2,560,000
- Deduction limit
- $4,090,000
- Phase-out begins
- 100%
- Bonus depreciation
- Dec 31
- In-service deadline
Section 179 Questions We Hear
General information — always confirm your specific situation with your tax advisor.
Does financed or leased equipment qualify?
Generally yes — this is one of the more useful parts of Section 179. Equipment that's financed or leased (via a capital lease) can still qualify for the full deduction in the year it's placed in service, even though you're paying for it over time. That can mean deducting the full cost while only a fraction of the cash has actually gone out the door — talk to your tax advisor about how your specific financing is structured.
Is this the same thing as bonus depreciation?
They're related but different. Section 179 lets you elect to deduct qualifying costs up to the annual limit; bonus depreciation (generally 100% under current law) then applies to eligible costs left over after that. The calculator above applies both, in that order, the same way the IRS rules do.
What's the deadline to qualify for the 2026 deduction?
Equipment and software need to be purchased (or financed) and placed in active business use by December 31, 2026, for calendar-year taxpayers. "Placed in service" means installed and usable — not just ordered or paid for — so timing your rollout matters as much as timing the purchase.
Is there a limit on how much I can deduct?
For 2026, the Section 179 deduction limit is $2,560,000, and it phases out dollar-for-dollar once total qualifying purchases for the year exceed $4,090,000 (fully phased out at $6,650,000). Your deduction also can't exceed your net business income for the year, though unused amounts can generally carry forward.
Can Techworks tell me exactly what I'll save?
We can help you plan and time an equipment refresh so it lines up with the deadline and your budget — but the exact deduction and tax savings depend on your business's full tax picture, so that part is always a conversation with your accountant or tax advisor. Think of us as the equipment and timing side of the plan.
Thinking about a hardware refresh before year-end? Let's plan it around the deadline.
(631) 285-1527
info@maketechwork.com
