Section 179 Deduction for Manufacturing Equipment

Buying a CNC machine, press brake, or laser welder this year? The Section 179 deduction may let your business deduct some or all of the cost of qualifying equipment from its federal taxable income in the year the machine is placed in service.


How much can manufacturers deduct in 2026?

The maximum Section 179 deduction for tax years beginning in 2026 is $2,560,000. The limit starts to decrease when a business places more than $4,090,000 in qualifying property into service. A business income limit also applies.

100% bonus depreciation is another option that can allow a first-year deduction for the full cost of eligible machinery acquired and placed in service after January 19, 2025. Ask your tax advisor which option makes sense for your business.


When does the machine need to be ready?

For a calendar-year business to claim the deduction in 2026, the machine generally needs to be ready and available for its intended use by December 31, 2026. If it’s ready to run in December, the first production job can happen in January. If the machine still needs installation to become operational, use the date it’s ready to run.


Machines available for immediate shipment from Pioneer

Select models from these product lines are available for immediate shipment.

Working toward a year-end deadline? Ask us for pricing, available models, and estimated delivery and installation dates. Contact Pioneer Manufacturing Solutions.

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