What is Section 179?
Small business expensing, also known as Section 179 expensing† is an IRS tax incentive created to encourage businesses to invest in themselves. In December 2015, Congress voted to make, Section 179 expensing, permanent and NFIB played a crucial role in getting this measure passed on behalf of small businesses.
News Alert: Section 179 Increased to One Million for 2018
With the passage and signing into law of The Tax Cuts and Jobs Act, the deduction limit for Section 179 increases to $1,000,000 for 2018 and beyond. The limit on equipment purchases likewise has increased to $2.5 million. This benefit allows businesses to deduct the full price of qualifying new or used business equipment, as well as software, purchased, leased, or financed during the tax year.
See How NFIB Small Businesses Have Used Section 179
Review the How Section 179 Helps Small Businesses Grow infographic to the right to see how NFIB Members reported using the Section 179 tax deduction to make qualifying purchases in 2016.
NFIB Members can now save up to $1,000,000 in tax deductions on eligible business expenses. Invest in your business’ future today with purchases or a line of credit from these NFIB providers:
Minimum 10% discount and free ground shipping on orders of maintenance, repair and operational supplies.
Save up to 40% on select systems with exclusive member discounts.
Members receive $500 cash allowance and up to $1,000 in incentives on most vehicle models.
Lines of credit up to $250,000 for your qualified business purchases and the Kabbage Card for instant access. Grow your business while getting a break on your taxes.
Protect Your Small Business
Join a group of 325,000 small business owners on a mission to ensure your right to own, operate, and grow your business.
NFIB Member Benefits are offered by third-parties through contractual arrangements with the NFIB Member Services Corporation, a wholly-owned subsidiary of NFIB, or one of its affiliated agencies. Neither NFIB nor any of its subsidiaries or affiliated agencies is providing any products or services to you and they shall not be responsible for any claims or losses relating to the use of the NFIB Member Benefits.
†Almost all types of business equipment and “off the shelf” software qualify for the Section 179 deduction. Consult your tax advisor to ensure any products you plan to purchase meet Section 179 expensing guidelines. All equipment must be financed/purchased and put into service by midnight on 12/31/2018.
Section 179 Resources
SECTION 179 TAX DEDUCTION ZONES
The IRS has identified several different areas of the country as special zones that qualify for an increased Section 179 Deduction. Some of the zones the IRS has identified include:
- New York Liberty Zone
- Enterprise Zone and Renewal Community Businesses
- Gulf Opportunity Zone (areas affected by recent Gulf Hurricanes)
Click below for more information regarding special Section 179 zones.