What qualifies for Section 179? (2026)

Section 179 lets a business deduct the cost of qualifying property in the year it’s placed in service instead of over many years. Here’s what usually qualifies, what doesn’t, and the 2026 limits.

Quick answers

Item	Section 179?	Notes
Laptops, desktops, tablets	Yes	Business share only if also used personally
Cell phones	Yes	Business share; keep a reasonable estimate of business use
POS systems, card readers, printers	Yes	Monthly POS software fees are a regular expense
Off-the-shelf software	Yes	Software you buy outright; subscriptions are expensed as you pay
Office furniture, shelving, signs	Yes	Tangible property used in the business
Machinery, tools, job-site equipment	Yes	Including used equipment you buy
Work vehicles	Yes, with limits	Over 50% business use; heavy SUV cap $32,000; car caps apply
Roof, HVAC, fire alarm, security on a nonresidential building	Yes	Qualified real property (commercial buildings)
Interior improvements to a commercial building (QIP)	Yes	Not enlargements, elevators or structural framework
Land, buildings, residential rental buildings	No	Buildings are depreciated over 27.5 or 39 years
Property bought from a close relative or gifted	No	Must be acquired by purchase from an unrelated party

2026 limits

Maximum deduction: $2,560,000.
Phase-out: reduced dollar for dollar once property placed in service in 2026 tops $4,090,000.
Heavy SUVs (over 6,000 up to 14,000 lb GVWR): $32,000 cap.
Can’t be more than your business income; extra carries forward.

Three rules for every item

Bought for the business and placed in service in 2026.
Used more than 50% for business in the first year. Multiply the cost by your business-use percentage.
Bought, not inherited or gifted, and not from a related person.

Small items: the $2,500 de minimis safe harbor

If you make the election on your return, items costing $2,500 or less per item or invoice can be expensed as supplies without depreciation (the limit is $5,000 if you have audited financial statements). Many small businesses use it for a printer or a phone and save Section 179 for bigger purchases.

Bonus depreciation as a backup

100% bonus depreciation is available for qualifying property acquired after Jan. 19, 2025. It has no income limit, which helps in a loss year. Both are reduced or spread out on CT and NC returns.

CT and NC don’t fully follow the federal write-off. Connecticut adds back 100% of bonus depreciation and 80% of Section 179, then lets you subtract 25% of the add-back in each of the next 4 years. North Carolina adds back 85% of bonus depreciation and limits Section 179 to $25,000 (phased out above $200,000), deducting the add-back 20% a year over 5 years. These are the 2025 state rules; check the 2026 forms when they come out.

See the dollar impact with the year-end equipment tax savings estimator or the full schedule in the equipment and vehicle depreciation calculator.

Equipment clients often ask about

Square: POS hardware and card readers, strong for small shops, food trucks and contractors.
Shopify POS: for retailers who also sell online.
Laptops on Amazon, label printers on Amazon and office furniture on Amazon.
Home Depot: tools and equipment for trades.

Some links in this box are affiliate or referral links, or will be once those programs approve us. If you buy through one, Enhance Finance may earn a commission at no extra cost to you. We pick tools for how well they serve clients, not for what they pay. As an Amazon Associate, Enhance Finance earns from qualifying purchases. Links open search or home pages; compare options and prices yourself.

Frequently asked questions

Does a laptop qualify for Section 179?

Yes. A laptop bought for your business and used more than 50% for business qualifies. If you also use it personally, deduct only the business share.

Can I use Section 179 for software?

Off-the-shelf software you buy outright qualifies. Monthly or yearly subscriptions, including most POS and accounting apps, are deducted as regular expenses when you pay them.

Does a new roof or HVAC system qualify?

Yes for nonresidential (commercial) buildings, as qualified real property. Roofs and HVAC on residential rental buildings don’t qualify for Section 179.

What is the Section 179 limit for 2026?

$2,560,000, reduced dollar for dollar once you place more than $4,090,000 of qualifying property in service. Heavy SUVs are capped at $32,000.

Sources (Checked November 2026)

Educational only. This is not tax or legal advice, and it is not investment advice. Tax rules change and every situation is different, so check the IRS (irs.gov), CT DRS (portal.ct.gov/drs) or NCDOR (ncdor.gov) and talk with a tax professional before you buy or file.

Not sure an item qualifies?

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Or call (475) 242-7941.

Enhance Finance LLC · Andrew Nocera, Tax Preparer & Small-Business Finance Consultant. Serving all of Connecticut, and North Carolina clients remotely.

Not tax, legal or investment advice. Figures are estimates for education. Checked November 2026.