Explore Equipment Leasing Opportunities
Tax-advantaged equipment leasing investments with strong cash yields and attractive IRRs
Understanding Equipment Leasing Tax Benefits
Section 179 Deduction
Deduct equipment costs immediately in the year of purchase rather than depreciating them over multiple years. The limit is $2,500,000 for tax years beginning in 2025 and $2,560,000 for 2026, reduced dollar for dollar once section 179 purchases pass $4,000,000 in 2025 or $4,090,000 in 2026.
Bonus Depreciation
The rate turns on when the equipment was acquired, not on the tax year alone. Qualified property acquired and placed in service after January 19, 2025 takes a 100% first-year special depreciation allowance, and that 100% is permanent: Public Law 119-21 deleted the old annual step-down, so the rate no longer erodes each year. Equipment acquired before January 20, 2025 and placed in service in 2025 stays on the 40% branch instead, 60% by election for property with a long production period and certain aircraft. A written binding contract signed on or before January 19, 2025 counts as acquisition on that date, so the contract date, not the delivery date, decides which branch applies.
MACRS Depreciation
Modified Accelerated Cost Recovery System allows for accelerated depreciation over 3-7 years for most equipment types, maximizing early-year deductions.
💡 Combined Tax Strategy
Section 179, bonus depreciation and MACRS stack, and how much of the cost lands in year one depends on which bonus branch the equipment falls into. On the 100% branch, property acquired and placed in service after January 19, 2025, the whole basis is recoverable in the first year. On the 40% branch it is not. Which branch applies to a given purchase is a question for your CPA.
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