Small business owners were already able to immediately deduct some of the costs of equipment purchased for use in their business. The maximum deduction in tax year 2022 is $1.08 million and the 2022 spending cap for purchases is $2.70 million. For tax year 2023, the maximum deduction is $1.16 million and the spending cap for purchases is $2.89 million. Unlike other tax relief,  Section 179 is permanent.

Eligible assets that depreciate over time are now eligible for “bonus expensing” where instead of expensing a fraction of the price per year of use, you can expense the entire purchase at once. Bonus expensing phases out in 2024.