Planning an equipment upgrade, production-line improvement, or automation project?
IRS Section 179 may allow eligible businesses to deduct qualifying equipment costs in the year the equipment is placed into service.
This is a tax deduction, not a rebate or purchase discount. Eligibility, taxable-income limitations, and phaseout rules apply.
Section 179 is a federal tax provision allowing eligible businesses to elect to deduct the cost of qualifying property, subject to applicable limits and requirements.
For tax years beginning in 2026, the IRS has established the following federal limits:
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John Henry Foster helps manufacturers select, source, and implement equipment that supports performance, reliability, and efficiency.
These solution categories include equipment that may qualify for Section 179. Actual eligibility depends on each purchase and the taxpayer's circumstances.
Industrial air compressors, dryers, filtration, and compressed air system improvements designed to support reliable production.
Hydraulic power units, pumps, cylinders, integrated systems, and engineered equipment to support demanding applications.
Servo systems, electric drives, motors, linear motion, controllers, and integrated motion solutions.
Robotics, custom automation, industrial controls, and turnkey systems designed around your production challenges.
Equipment images are illustrative. Routine maintenance, replacement consumables, and ordinary repairs generally are not Section 179 equipment purchases.
Equipment projects can involve more than selecting a product. Availability, engineering, installation, and commissioning may all affect project completion.
Review your facility's needs and operational goals.
Select equipment and develop the project scope.
Discuss lead times, availability, and installation.
Plan testing and operational readiness when applicable.
Yes. Both new and used equipment may qualify if the property and transaction meet IRS requirements. Restrictions and business-use rules apply.
It may. Eligibility depends on the financing arrangement, ownership, placed-in-service timing, and other relevant tax rules.
Not necessarily. Qualifying equipment must generally be ready and available for its intended business use during the applicable tax year.
No. Eligibility depends on the type of property, business use, acquisition, and other requirements. A tax advisor should evaluate specific purchases.
For tax years beginning in 2026, the maximum Section 179 deduction is reduced dollar-for-dollar by qualifying property costs above $4.09 million. Other depreciation provisions may apply.
JHF can help with equipment selection, specifications, quotes, and project scheduling. A qualified tax professional should determine tax eligibility and the amount of any allowable deduction.
Replacing outdated equipment? Planning automation? Exploring ways to improve production?
Our team can help you evaluate equipment options, technical requirements, availability, and implementation considerations.
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