As we move closer to the end of 2026, this is a great time to take a step back and look at how you can improve your operation and lower your tax bill before the year wraps up. One smart strategy: taking advantage of Section 179 and the return of 100% bonus depreciation, two powerful tax incentives that can put real money back into your business.

Section 179 of the IRS tax code lets you deduct the full purchase price of qualifying new or used equipment purchased or financed during the year. That means instead of depreciating a machine over several years, you can write off the entire cost in the year you put it into service.  Calculate your potential deduction using our tax calculator.

If you invest in equipment this year, you could see major savings on your 2026 tax return. For 2026, businesses can take advantage of a Section 179 deduction of up to $2,560,000, helping offset the cost of qualifying equipment purchases.

Let’s say you buy a $100,000 piece of equipment. If you put it into service this year, you could potentially deduct the full amount, saving you thousands in taxes. If you finance that purchase, you can still take the full deduction even though you've paid only a fraction of the cost in 2026. That’s a win for both cash flow and tax savings.

There are other wins, too. If you want to upgrade old equipment, are expanding your operation, or are looking for a competitive edge with new technology, now’s the time to make your move. Waiting could cost you. To qualify for this year’s tax savings, the equipment must be purchased and placed into service by December 31, 2026. 

A few things to keep in mind: while Section 179 deductions are limited to your 2026 active business taxable income before the deduction, any unused Section 179 amount can be carried forward to future tax years. Separately, the 2026 Section 179 deduction begins to phase out dollar for dollar once qualifying equipment purchases exceed $4,090,000.

This year, businesses can also benefit from 100% bonus depreciation. Unlike Section 179, bonus depreciation is not limited by taxable business income or a total spending cap. As a result, operations that cannot fully utilize the Section 179 deduction may still be able to deduct the remaining cost of qualifying equipment through bonus depreciation. Depending on your circumstances, bonus depreciation may also create a net operating loss that can generally be used to offset taxable income in other tax years, subject to applicable tax rules and limitations. 

This gives you multiple ways to benefit. As always, you should talk with a certified public accountant or other trusted tax advisor to make sure you're maximizing your deductions and staying compliant.

Need help choosing the right equipment? Your local CNH dealer is ready to walk you through the process. They’ll not only help you select the right machine, they’ll also explain financing options that work for your budget and timeline.

Don't think of Section 179 and 100% bonus depreciation as just tax deductions. It’s a chance to reinvest in your business, increase productivity and stay ahead of the curve. But you must act before the clock runs out on December 31, 2026. Talk to your tax advisor and your local CNH equipment dealer today to learn how you can make the most of Section 179 and 100% bonus depreciation this year.

Note: To qualify for the 2026 deduction, equipment must be purchased and placed into service by December 31, 2026. Some states may decouple from federal law and not allow these deductions. CNH Capital does not provide tax, legal, or accounting advice. Always consult your own professional advisor regarding your specific situation.