Skip to main content
Talk to an Expert

Tax Incentives

Section 179 allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. 
Calculate Tax Savings

Maximize Your Equipment Investment with Section 179

If your business is planning to purchase manufacturing equipment, automation systems, CNC machines, or industrial machinery, Section 179 may allow you to deduct the full value of the equipment from your taxes.

Even better, equipment financed through a loan or lease may still qualify for the deduction.

100% BONUS DEPRECIATION IS BACK

Applies to new and used equipment

No dollar cap and no income limitation

Offers immediate cash flow and tax savings

TaxSavings (1)

Section 179 Sample Calculation

$3,000,000 Equipment Purchases - Qualifying New or Used 
($2,560,000)  Section 179 Deduction 
$400,000  Remaining Cost Basis
($400,000) Bonus Depreciation of 100% - Year 1 Only
($3,000,000) Total Section 179/Depreciation in the First Year
100%  Percentage of Write Off 
($630,000)  Tax Savings - (Assuming Rate of 21%)
$2,370,00 Equipment Cost after Savings

 

Plan Your Equipment Investment with Confidence

One of the most valuable benefits of Section 179 is that businesses may qualify for the deduction even if the equipment is financed. 

Use our tax calculator to estimate savings and explore financing options that help your business invest in new equipment. 

Talk With a Financing Specialist

Payment & Sec 179 Tax Deduction Calculator

 

Section 179 allows a $2,560,000 write-off for eligible new or used equipment acquired during 2026. This substantial deduction directly reduces your company’s tax liability, putting real dollars back in your bank account this year, not in five years.

Bonus depreciation allows companies to deduct an additional 100% of any remaining cost that wasn’t covered by Section 179—making financed equipment highly tax-advantaged in the first year.

Whether you’re considering new machinery, used specialty vehicles, technology upgrades, or other business equipment, our calculator shows your potential savings. Enter your equipment cost and select your tax bracket to see your estimated 179 deduction plus bonus depreciation


		

	

	

		
Payment & Tax Savings Estimations

		
		

			
Section 179 Deduction: 

		

		

			
100% Bonus Depreciation Deduction: 

		

		

			
Total First Year Deduction: 

		

		

			
Estimated Tax Savings: 

		

		

			
Equipment Cost After Tax Savings: 

		

		

			
Estimated Monthly Payment: 

		

		

			
Approximate Cost Per Day: 

		

		
		
        
	

	
	



























	



	










































These payment calculations are estimates used for information purposes only and do not constitute a commitment from VEF to provide financing. Estimated payments shown may not reflect current market conditions. A completed credit application, along with thorough business discussions, will determine the best rate and term possible.


VEF is not a qualified tax advisor. The tax savings calculations are estimates only, and every company's tax situation is different. This calculator must not be interpreted as either a legal opinion or a tax advisory. Companies may also be eligible for additional state and local tax deductions, as well as interest deductions. You should always consult with your accountant before making any purchase to understand its tax implications.
































	

	

	


		






		

			
						


							

								

									

										


	Finance Equipment While Preserving Your Tax Advantage


										
											

												
One of the most valuable benefits of Section 179 is that businesses may qualify for the deduction even if the equipment is financed.


This means companies can:


• Preserve working capital
• Spread equipment payments over time
• Still deduct the full equipment cost


Many businesses combine equipment financing with Section 179 to improve cash flow while upgrading production equipment.




 


 

											

										
									

								

							


							

								

									
									

										
											
How does Section 179 work?

											
										
										

											
Step 1: Purchase or finance qualifying equipment.


Step 2: Place the equipment into service during the tax year.


Step 3: Deduct the qualifying purchase amount from taxable income.


Step 4: Reduce your effective equipment cost.


Section 179 can make a significant difference in how quickly businesses recover the cost of equipment investments.

										

									

									
									

										
											
What equipment qualifies for Section 179?

											
										
										

											
Most tangible business equipment qualifies, including CNC machines, automation systems, robotics, fabrication equipment, and manufacturing machinery. 

										

									

									
									

										
											
Can I use Section 179 if I finance equipment?

											
										
										

											
Yes. Equipment financed through loans or leases may still qualify for the Section 179 deduction as long as it is placed into service during the tax year. 

										

									

									
									

										
											
Is there a limit to the Section 179 deduction?

											
										
										

											
Section 179 limits are updated annually by the IRS. Businesses should consult a tax professional to determine eligibility and deduction limits.