Section 179 and bonus depreciation on a CNC machine bought in 2026
For tax years beginning in 2026, Section 179 lets a shop deduct up to $2,560,000 of the cost of qualifying equipment such as a CNC machine, and bonus depreciation is 100 percent for qualified property acquired after January 19, 2025. Each is taken in the year the machine is placed in service, so to count for 2026 in a tax year that ends December 31, the machine has to be installed and ready to run by then, not just delivered.
Published Nov 10, 2026
How do Section 179 and bonus depreciation compare in 2026?
Both let a shop deduct part or all of a machine's cost in the year the machine is placed in service, instead of spreading it over the years the machine is used. IRS Publication 946 (Pub. 946) explains both, and calls bonus depreciation the special depreciation allowance.
| 2026 | Section 179 | Bonus depreciation |
|---|---|---|
| How much | Up to $2,560,000. The limit drops dollar for dollar once the Section 179 property you place in service in the year costs more than $4,090,000. | 100 percent, for qualified property acquired after January 19, 2025. |
| New or used | Either can qualify. None of the four tests in Pub. 946 asks for a new machine. | Pub. 946: new property or certain used property. |
| Which year | The year the machine is placed in service. | The first year the machine is placed in service. |
| IRS source | Rev. Proc. 2025-32, section 4.24; Pub. 946 | Notice 2026-11; Pub. 946 |
Bonus depreciation had been phasing down year by year. A 2025 law, Public Law 119-21, made it a permanent 100 percent for qualified property acquired and placed in service after January 19, 2025 (IRS Notice 2026-11). The Section 179 figures are adjusted for inflation for tax years beginning after December 31, 2025 (Rev. Proc. 2025-32), so the ones above are for 2026 only.
Does a machine delivered in December count for 2026?
Only if it is also installed and ready to run by December 31, or by the last day of your tax year if your shop does not use the calendar year. Both deductions are taken in the year the machine is placed in service, and Pub. 946 says property is placed in service when it is ready and available for a specific use, even if you are not using it yet.
Pub. 946's own Example 1 is a machine: delivered one year, but not installed and operational until the next, so it is placed in service in the next year. Had it been ready and available for use when it was delivered, it would have counted in the year of delivery, even though it was not used until later.
So a December purchase needs the whole path to a running machine finished before the year ends: delivery, rigging, power, air and start-up. See what your shop needs ready before the machine arrives.
Allow for the order itself, too. A new machine we do not have on our floor is built to order, so ask for its lead time before you count on a date. Our terms of sale say shipment dates are not guaranteed. The new and pre-owned machines on our floor are listed under Machines in stock. If a leasing company is buying the machine to lease it to you, our terms need an acceptable purchase order from that company before the machine ships.
Does a used machine qualify?
It can, for both deductions. Pub. 946 lists four tests for Section 179, and none of them asks whether the machine is new:
- It must be eligible property. Pub. 946 lists machinery and equipment as tangible personal property, which is eligible.
- It must be acquired for business use.
- It must have been acquired by purchase.
- It must not be property that Pub. 946 lists as not qualifying.
For bonus depreciation, Pub. 946 says qualified property can be either new property or certain used property. Your CPA confirms whether a given used machine meets that.
Our used machines are listed under Pre-owned machines. Before you buy one, see what to check on a used CNC machine.
What should you take to your CPA?
These facts about the machine and how you bought it:
- The invoice.
- The date the machine was installed and ready to run, not just the date it was delivered.
- Whether it is new or used.
- How you paid for it: outright, financed, or through a leasing company that bought it for you.
- Any machine you traded in toward it.
Your CPA decides which deductions to take, and whether the other limits in Pub. 946 apply to your shop. This guide is general information, not tax advice.
Common questions
What is the Section 179 limit for 2026?
It is $2,560,000 for tax years beginning in 2026. The limit is reduced, but not below zero, by the amount by which the cost of Section 179 property placed in service during the 2026 tax year exceeds $4,090,000. Both figures are from IRS Rev. Proc. 2025-32, section 4.24, and IRS Publication 946.
Does a used CNC machine qualify for Section 179?
It can. None of the four Section 179 tests in IRS Publication 946 asks for new property, and machinery and equipment is eligible property. For bonus depreciation, Publication 946 says qualified property can be new property or certain used property. Your CPA confirms what applies to your machine.
If the machine arrives in December and is installed in January, which year counts?
The year it is installed and ready to run. IRS Publication 946 says property is placed in service when it is ready and available for a specific use, and its Example 1 is a machine delivered one year but not installed and operational until the next, which is placed in service in the next year.
Is bonus depreciation 100 percent in 2026?
Yes, for qualified property acquired after January 19, 2025. IRS Notice 2026-11 explains that a 2025 law, Public Law 119-21, made the 100 percent deduction permanent for qualified property acquired and placed in service after that date.