For tax years beginning in 2026, the maximum is $2,560,000. It is reduced dollar for dollar when qualifying property placed in service exceeds $4,090,000. These are overall limits, not a deduction available for every purchase.
A separate taxable-income limit can defer the deduction. Heavy SUVs have a separate $32,000 Section 179 cap for 2026, subject to vehicle definitions and exceptions. Bonus depreciation has its own rules. Keep the invoice, service date and business-use evidence.
An example
Hypothetical: a $40,000 machine used entirely in an active business may qualify for a $40,000 Section 179 deduction if all limits are satisfied. The deduction reduces taxable income; it does not refund the purchase price.
Reviewed October 7, 2026. IRS reference ↗
This is a general reference. Discuss how the rules apply to your business with your tax professional.