What Is the Section 179 Deduction?

Section 179 lets businesses immediately deduct the full cost of qualifying equipment and software in the year it's purchased, rather than depreciating it over several years. For 2024, the deduction limit is $1,220,000. This applies to things like machinery, computers, vehicles (with limits), and off-the-shelf software. The deduction can't exceed your business's taxable income for the year. It's a powerful tool for reducing your tax bill in the year you make a major purchase.