Section 179 and Covid-19

Home / Section 179 and Covid-19

Section 179 and COVID-19

The following is information related to the Section 179 tax deduction and COVID-19 restrictions and measures.

Eligible Equipment

Tangible business equipment purchased to modify businesses and/or to conform with COVID-19 restrictions and measures will generally qualify for the Section 179 tax deduction. This includes sanitizing stations, temperature check stations, dividers/plexiglass shielding, new printed signage, and similar business equipment purchased to modify the workspace for employees and/or the public. As always, check with your tax professional or the IRS website for specifics on types of eligible equipment.

Section 179 is Not Affected by COVID-19 Financial Assistance

The Section 179 tax deduction is unaffected by any other government program a company may have participated in. For example, if a company received a forgivable PPP loan due to COVID-19 affecting their operations, they are still eligible to claim a Section 179 tax deduction provided they (a) purchased eligible equipment and put it into service by December 31, and (b) have a taxable income after any adjustments pertaining to the programs they participated.

How Much Tax Can the Section 179 Deduction Save Me?

Section 179 can save you considerable dollars on your taxes, which can be very meaningful for a company affected by COVID-19. Use this free Section 179 Calculator to calculate your tax savings.

Financing Equipment and the Section 179 Deduction during COVID-19

Companies may still finance equipment and take a Section 179 tax deduction. Again, this is irrespective of any other programs a company may or may not have participated in. The usual Section 179 parameters remain: must have purchased (or financed/leased) eligible equipment, put it into service by December 31, and also have a taxable income. See this Section 179 Qualified Financing page for more information.

For further information on Section 179 and COVID-19, check back with this page periodically, or ask your tax professional.

ABOUT THIS SITE

This website is designed to answer your questions regarding the Section 179 Tax Deduction and explain the impact of various Stimulus Acts on Section 179. We aim to demystify the Section 179 Deduction by providing clear, plain-terms explanations; outlining the types of property that qualify for the deduction; and exploring the numerous ways the Section 179 deduction can benefit your business's bottom line. Additionally, we provide access to relevant IRS tax forms and helpful tools, such as our free Section 179 Deduction Calculator, which is currently updated for the 2023 tax year.

SIGN YOUR APPROVAL FOR SECTION 179

Your voice matters! Thanks to our collective effort, Section179.Org successfully petitioned Congress to raise the Section 179 limit. But our work isn't done. With your continued support, we can ensure this beneficial policy remains robust. Join other savvy business professionals, add your name, and ensure American Small Businesses don't get left behind.

Sign Petition