Power your business forward with maximum tax savings on new and used Cat equipment

Maximize Your 2026 Equipment Savings with Section 179 & 100% Bonus Depreciation

Big tax breaks on equipment financing continue in 2026 with the highest level of savings available! Due to legislative updates under the “One Big Beautiful Bill Act” (OBBBA), U.S. businesses can take advantage of 100% Bonus Depreciation for assets placed in service on or after January 20, 2025. Whether you’re upgrading machines or expanding your fleet, these incentives help you stretch your dollar further and keep more cash in your business.

2026 Tax Incentives at a Glance

$2,560,000

Section 179 Deduction

Deduct up to $2,560,000 on qualifying equipment purchases. The deduction begins to phase out once total purchases exceed $4,090,000.

100%

Bonus Depreciation

Deduct 100% on both new and used equipment.

Why Act Now?

  • Reduce taxable income in 2026.
  • Improve cash flow and reinvest in your business.
  • Secure your next piece of Cat® equipment while maximizing savings.

Connect with Us to Secure Your Equipment and Maximize Savings

Don’t wait until the end of the year. These tax benefits are available now, and equipment must be placed in service by December 31, 2026 to count toward your 2026 deductions. Contact your local machine sales representative to get started.

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What is Section 179?

Section 179 allows businesses to deduct the full purchase price of qualifying equipment or software purchased during the tax year, rather than depreciating the asset over time. This makes it a powerful tax savings tool for small and mid-sized businesses looking to upgrade equipment or expand their operations.

For 2026, the Section 179 deduction limit has increased to $2,560,000, and the deduction begins to phase out once total equipment purchases exceed $4,090,000. This means businesses can deduct up to the full purchase price of qualifying equipment, so long as it’s placed into service by the end of the year.

Key Benefits of Section 179

  • Applies to both new and used equipment.
  • Allows for immediate savings, improving cash flow for your business.

What is Bonus Depreciation?

Bonus Depreciation is an additional tax incentive that allows businesses to deduct a large percentage of the purchase price of qualifying equipment in the first year it’s in service. Unlike Section 179, Bonus Depreciation has no cap on the total amount of equipment purchased and can be used by businesses of any size, including larger companies.

For 2026, Bonus Depreciation allows for a 100% deduction on both new and used equipment purchases. Now is the time to take advantage of this highest possible deduction.

Key Benefits of Bonus Depreciation

  • Can be applied to equipment purchases exceeding the Section 179 limits.
  • Available for both new and used equipment (first use by the purchasing business).
  • Provides an opportunity for businesses to accelerate depreciation and realize immediate savings.

How Section 179 and Bonus Depreciation Work Together

Combining Section 179 with Bonus Depreciation can offer businesses even greater tax savings. Here’s how it works:

  1. Section 179 is applied first, allowing you to deduct up to the limit of $2,560,000.
  2. Bonus Depreciation then kicks in, enabling you to deduct 100% of any remaining cost over the Section 179 limit.

This combination allows businesses to maximize their deductions, making it easier to invest in new or used equipment before the end of the year.

Disclaimer

The information provided here is for general guidance only. Please consult your tax professional for advice on how these deductions apply to your business. This is not meant to substitute for professional tax advice. Visit the IRS website or the Section 179 website for more details.