Section 179 of the Internal Revenue Code gives businesses the opportunity to deduct the purchase price of qualifying new and used equipment placed into service during the tax year they are purchased or financed. For 2017, up to $510,000 can be deducted but decreases dollar for dollar on equipment purchases over $2,030,000.
Bonus depreciation on new equipment purchases will sit at 50 percent for 2017. Those percentages drop to 40 percent in 2018 and 30 percent in 2019. Bonus depreciation will expire in 2020 unless new legislation is enacted at that time.