The 2024 deduction limit is $1,220,000 and is applicable to new and used equipment, including off-the-shelf software. To qualify for this deduction in 2024, the equipment must be bought or financed and put into use between January 1 and December 31, 2024.

The maximum spending on equipment is capped at $3,050,000 before the Section 179 deduction starts to reduce dollar for dollar, making it a genuine incentive for small businesses. Larger businesses spending over $4,270,000 won't receive the deduction.

Additionally, an 60% Bonus Depreciation is available in 2024, which is typically utilized after reaching the Section 179 spending cap. It applies to both new and used equipment. 

Alliance Funding Group is not offering legal, tax, accounting, or financial advice. Calculator is for illustrational purposes only. Customers are encouraged to consult with their tax and accounting advisors for a clear understanding of how these tax benefits and/or various equipment financing products could impact their specific business conditions. For complete details or changes to the tax incentives, please visit www.irs.gov or contact the IRS helpline at 800-829-4933