Machinery Finance Tax Incentives Available for 2023

The Section 179 tax deduction allows companies to write-off up to $1,160,000 of equipment if total acquisitions are less than $2,890,000. If capital acquisitions exceed $2,890,000, this write-off is reduced dollar for dollar. For instance, if a company acquires $2,990,000 of equipment, it is able to write-off $1,160,000 less $100,000 (the amount of capital acquisition over the $2,890,000 limitation) for a net write-off of $1,060,000. Once a company’s capital acquisitions reach $4,050,000, it no longer qualifies for any Section 179 deduction. Equipment which is new to a company (for example, buying a new or used machine), can be expensed under Section 179.