Every fall we get the same question: “Is it smarter to buy the machine now or wait until spring?” In 2026 the tax code makes a strong case for now.

What Section 179 does. Section 179 lets a business deduct the full purchase price of qualifying equipment in the year the equipment goes into service, instead of spreading the deduction over five to seven years of depreciation. For 2026 the limit is $2,560,000 of equipment, phasing out only once a business places more than $4,090,000 in service — well beyond what most shops will ever buy. On top of that, 100% bonus depreciation is now permanent, covering amounts Section 179 doesn’t.

What qualifies. New and used machinery both count (used equipment just has to be new to you). The machine has to be used for business more than half the time — and here’s the part buyers miss — it has to be placed in service by December 31, 2026: delivered, installed, and ready to run. A signed quote, a deposit, even a paid invoice sitting on a truck in January does not count for 2026.

Financing doesn’t disqualify you. This surprises people: a financed machine still earns the full deduction in the year it goes into service. You’re not required to pay it off first. We work with two equipment lenders, Beacon Hill Funding and Stearns Bank, and match each customer to the lender that fits their situation.

A concrete example. A machine bought for $69,850 and installed in your shop in December is up to a $69,850 deduction on your 2026 return. What that’s worth in actual tax depends on your bracket and your state’s rules — which is why the last step is always a call to your own tax advisor. But the deduction itself is real, and it expires with the calendar.

The practical deadline. Because the machine must be running by Dec 31, the real deadline is earlier: freight from the warehouse, rigging, and install scheduling all take time. Orders placed by mid-December are comfortable; orders placed Christmas week are a gamble. Right now we have GMC year-end machines in stock in California with free freight in the lower 48, plus a yard full of used machines in Sutton that qualify the same way.

If a machine is on your 2026 list, let’s talk this month: 508-581-9922 (Arthur, ext. 101) or call/text 508-365-8395.

This post is general information about a tax provision, not tax advice. Talk to your tax advisor about your situation.