As the year begins to wind down, many businesses start looking at their financials, planning for the year ahead and deciding where their next investment could make the biggest impact.
If new equipment is already part of your growth plan, Section 179 may give you another reason to make that investment before the end of 2026.
Section 179 is a federal tax provision that may allow businesses to deduct the cost of qualifying equipment in the year it is placed into service rather than depreciating that cost over several years. For businesses already considering new equipment, that can potentially turn a necessary investment into an opportunity to reduce taxable income while preparing for future growth.
At Millcraft, we're equipment and solutions specialists — not tax professionals. Our goal is to help you understand the opportunity Section 179 may provide and help you find the right equipment for your business. Always talk with your accountant or tax advisor to determine whether Section 179 applies to your specific situation.
What Is Section 179?
Traditionally, when a business purchases certain equipment, the cost may be depreciated over several years.
Section 179 gives qualifying businesses the option to potentially deduct some or all of the cost of eligible equipment during the tax year the equipment is placed into service, subject to IRS rules and limitations.
For tax years beginning in 2026, the IRS has set the maximum Section 179 deduction at $2,560,000. The deduction begins to phase out when the total cost of qualifying Section 179 property placed in service during the year exceeds $4,090,000.
Those numbers are significant, but they don't mean every business automatically qualifies for the maximum deduction. The amount a business may deduct depends on several factors, including the equipment purchased, when it is placed into service, how it is used and the business's taxable income.
That's why your tax professional should always be part of the conversation.
Why Section 179 and Equipment Investment Can Go Hand in Hand
The best equipment investments aren't made simply because there's a potential tax deduction.
They're made because they solve a problem.
Maybe you need to increase production. Maybe you're turning away work because you don't currently have the right capabilities. Maybe an aging machine is creating too much downtime. Or maybe you've identified an entirely new revenue stream you want to pursue.
Section 179 can potentially make the timing of that investment even more attractive.
Instead of looking at equipment as simply another year-end expense, consider what that equipment could allow your business to do differently in 2027 and beyond.
What Could Your Next Piece of Equipment Unlock?
Every business is different, and growth doesn't follow the same path for everyone.
For some businesses, the opportunity may be increasing capacity. For others, it may be offering something their customers are already asking for.
For craft breweries, your next opportunity might extend beyond what's in the glass. If customers already love your brand, adding the ability to produce customized shirts and merchandise could create another revenue stream and strengthen the connection between your brewery and your customers. A direct-to-garment or direct-to-film solution could help turn your brand into something customers can wear.
Maybe merchandise isn't the priority. Your brewery may instead be looking for ways to improve production, streamline packaging or invest in equipment that helps your operation grow more efficiently.
For commercial print shops, growth might mean expanding beyond the work you already produce. If customers are asking about banners, signage, wall graphics, decals or other applications you currently outsource or turn away, adding wide format capabilities could allow you to bring more of that work in-house.
Or perhaps the opportunity is simply doing more of what you already do well — faster, more consistently and with less downtime.
For apparel decorators, growing demand may mean adding another DTG or DTF solution, increasing production capacity or investing in technology that makes it easier to handle shorter runs and customized orders.
For wide format shops, the next investment could help increase output, add finishing capabilities, improve workflow or open the door to applications you haven't been able to offer before.
And these are only a few examples.
The right equipment doesn't just produce a product. It can create capacity, efficiency and opportunities that didn't exist before.
Invest in What Comes Next
One of the biggest advantages of working with Millcraft is that you don't have to know exactly what machine you need before starting the conversation.
You just need to know what you're trying to accomplish.
Tell us where you're running into limitations. Tell us what customers have been asking for. Tell us where you'd like your business to go next.
Our specialists can help you evaluate your needs and explore equipment that makes sense for your operation — whether you're involved in commercial print, wide format, apparel decoration, beverage production or another area of the industry we serve.
We're not interested in simply putting another machine on your floor.
We want to help you find the right solution for what comes next.
Don't Wait Until December 31
If you're considering Section 179 as part of an equipment purchase, timing matters.
Generally, qualifying equipment must be placed into service during the applicable tax year for a business to claim a Section 179 deduction for that year. For calendar-year businesses looking to claim the deduction for 2026, waiting until the final days of December could create a problem if equipment still needs to be ordered, delivered, installed or made ready for use.
That's another reason to start the conversation early.
Talk with your tax professional about Section 179 and whether it makes sense for your business. Then talk with Millcraft about the equipment, availability and timeline needed to help make your plans a reality.
Make Your Investment Work Harder
A year-end equipment purchase shouldn't happen simply because a tax incentive exists.
It should help move your business forward.
If the equipment you've been considering can help you produce more, operate more efficiently, expand into a new market or create another source of revenue, Section 179 may provide an additional financial incentive to stop putting that investment off.
Ready to take the next step? Start a conversation today and let's explore what the right equipment could do for your business.
Our specialists are ready to help you find a solution that fits your goals today and helps position your business for what's next.
Just Ask.
This article is provided for general informational purposes only and is not intended to provide tax, accounting or legal advice. Section 179 eligibility and tax treatment vary based on individual business circumstances. Please consult a qualified tax professional regarding your specific situation.