--- title: IRS Section 179 Tax Deduction [UPDATED FOR 2024] description: New and used forklifts and material handling equipment qualify for the Section 179 depreciation deduction. Learn more about the IRS Section 179 rules. image: https://www.sstlift.com/hubfs/Blog%20Images/SST%20Blog%20-%20Using%20the%20Section%20179%20Tax%20Deduction%20for%20New%20Forklift%20Purchases%20in%202020.png --- [![Southern States Toyotalift](https://www.sstlift.com/hs-fs/hubfs/SST-Logo-Transparent%20400px.png?width=200&height=73&name=SST-Logo-Transparent%20400px.png "Southern States Toyotalift")](https://www.sstlift.com) [![Specials](https://no-cache.hubspot.com/cta/default/2513113/2edf227d-5e58-4fe4-bf47-7651849d1d74.png)](https://cta-redirect.hubspot.com/cta/redirect/2513113/2edf227d-5e58-4fe4-bf47-7651849d1d74) [![Contact Us](https://no-cache.hubspot.com/cta/default/2513113/873da086-c957-4246-89d7-3f55d705720a.png)](https://cta-redirect.hubspot.com/cta/redirect/2513113/873da086-c957-4246-89d7-3f55d705720a) ** ** ** [ Call Now](tel:+18002262345) [![Southern States Toyotalift](https://www.sstlift.com/hs-fs/hubfs/SST-Logo-Transparent%20400px.png?width=200&height=73&name=SST-Logo-Transparent%20400px.png "Southern States Toyotalift")](https://www.sstlift.com/) [![Specials](https://no-cache.hubspot.com/cta/default/2513113/2edf227d-5e58-4fe4-bf47-7651849d1d74.png)](https://cta-redirect.hubspot.com/cta/redirect/2513113/2edf227d-5e58-4fe4-bf47-7651849d1d74) [![Contact Us](https://no-cache.hubspot.com/cta/default/2513113/873da086-c957-4246-89d7-3f55d705720a.png)](https://cta-redirect.hubspot.com/cta/redirect/2513113/873da086-c957-4246-89d7-3f55d705720a) ** ** ** Search this site on Google Search Google **Menu** ** ** [![Specials](https://no-cache.hubspot.com/cta/default/2513113/2edf227d-5e58-4fe4-bf47-7651849d1d74.png)](https://cta-redirect.hubspot.com/cta/redirect/2513113/2edf227d-5e58-4fe4-bf47-7651849d1d74) [![Contact Us](https://no-cache.hubspot.com/cta/default/2513113/873da086-c957-4246-89d7-3f55d705720a.png)](https://cta-redirect.hubspot.com/cta/redirect/2513113/873da086-c957-4246-89d7-3f55d705720a) [**Southern States Blog](https://www.sstlift.com/blog) # Save Big on Your 2024 Taxes with the Section 179 Tax Deduction by [Adam Gavrun](https://www.sstlift.com/blog/author/adam-gavrun), on Oct 17, 2024 12:30:00 PM ![Using the Section 179 Tax Deduction for New Forklift Purchases in 2020](https://www.sstlift.com/hs-fs/hubfs/Blog%20Images/SST%20Blog%20-%20Using%20the%20Section%20179%20Tax%20Deduction%20for%20New%20Forklift%20Purchases%20in%202020.png?width=686&name=SST%20Blog%20-%20Using%20the%20Section%20179%20Tax%20Deduction%20for%20New%20Forklift%20Purchases%20in%202020.png) Many people think the Section 179 tax deduction is some mysterious or complicated tax code. Those in the know take advantage of the opportunity to invest in upgrades and enjoy a nice tax deduction.  If you're debating whether to buy new equipment this year vs. next year, this article is a must-read. Learn how Section 179 works and estimate your savings using the tax deduction calculator. ## Depreciation and Section 179 Typically, businesses use straight-line depreciation to deduct equipment purchases over many years. Section 179 allows businesses to depreciate and deduct purchases faster, aka accelerated depreciation. ### How Section 179 Works (Hypothetical Example) A company buys a forklift in 2024 for $60,000. They can either deduct that purchase slowly over five years using straight-line depreciation OR deduct 60% of the forklift's cost right away using Section 179.  Straight-line Depreciation Deduction Schedule: - 2024 taxes: - $12,000 - 2025 taxes: - $12,000 - 2026 taxes: - $12,000 - 2027 taxes - $12,000 - 2028 taxes: - $12,000 Section 179 Deduction Schedule: - 2024 taxes: - $36,000 - 2025 taxes: - $12,000 - 2026 taxes: - $12,000 Consult your tax advisor and accountant to determine how a specific purchase using Section 179 may affect your taxes.  ## Section 179 Rules  [Section 179 of the IRS tax code](https://www.irs.gov/publications/p946#en_US_2022_publink100097624) is an incentive created by the U.S. government to encourage small and mid-sized companies to reinvest in themselves. In 2024, businesses may deduct 60% of the purchase price of qualifying new or used equipment acquired in 2024. Whether you pay for the equipment outright, make payments or lease, you can use Section 179 to reduce your gross income. The deduction applies to federal taxes only, not Georgia or Florida corporate taxes.  The **equipment must be purchased and put into service by 11:59 p.m. on December 31, 2024**. “Put into service” means the equipment must be in your possession and ready for use by end-of-day on December 31st. If you bought a forklift, it should be somewhere in your facility vs. on order with the factory. If you bought a dock leveler, it must be installed. You get the idea… ## Section 179 Changes for 2024 In 2023, the Section 179 deduction was 80%. This year, it's 60%. Next year, it will be 40%. The maximum deduction limits have also changed. Businesses may depreciate and deduct qualified new or [used equipment](https://www.sstlift.com/used-forklifts-for-sale-georgia-florida) purchases up to $1,220,000. The entire $1.22 M deduction can be claimed up to the $3.05 M equipment purchase limit. Once that number is reached, the Section 179 deduction decreases dollar-for-dollar and reaches zero once $4,270,000 equipment is purchased or financed.  Put another way, this deduction only makes sense until you reach $4.27 million in yearly purchases. As mentioned above, it’s an incentive for SMBs (small and midsize businesses). ![Section179-2024](https://www.sstlift.com/hs-fs/hubfs/Section179-2024.jpg?width=642&height=496&name=Section179-2024.jpg) [Click to see the image larger](https://www.sstlift.com/hubfs/Section179-2024.jpg) ## What equipment qualifies for a Section 179 deduction? The IRS permits businesses to depreciate and deduct all tangible property used during business activities. Anything that’s a physical object used to enable income-generating activities should be deductible — even if you’re making payments.  Qualifying purchases include: office equipment, computer hardware, corporate vehicles, and industrial equipment such as new or used: - [Forklifts](https://www.sstlift.com/new-equipment) - [Aerial lifts](https://www.sstlift.com/new-equipment) - [Loading dock equipment](https://www.sstlift.com/blog/tag/loading-dock) - [Warehouse racking](https://www.sstlift.com/warehouse-storage-solutions) - [Warehouse automation hardware](https://www.google.com/search?q=site%3Ahttps%3A%2F%2Fwww.sstlift.com+automation) - [Electric utility vehicles](https://www.sstlift.com/columbia) - [Industrial cleaning equipment](https://www.sstlift.com/industrial-cleaning-powerboss) ## How much can I save? Taking an 60% deduction right away instead of slowly over many years can significantly reduce your operation’s tax liability in 2024. *How much will you save? *The exact number depends on a variety of factors. Since we’re material handling experts and not tax experts, please consult with a tax professional to calculate potential savings and ensure compliance. But if you want a rough estimate, try this [Section 179 savings calculator](https://www.section179.org/section_179_calculator/). [![Screenshot 2024-09-30 at 1.06.33 PM](https://www.sstlift.com/hs-fs/hubfs/Screenshot%202024-09-30%20at%201.06.33%20PM.png?width=690&height=706&name=Screenshot%202024-09-30%20at%201.06.33%20PM.png)](https://www.section179.org/section_179_calculator/) ## The Clock is Ticking… The 60% depreciation option [ends in 2024](https://tax.thomsonreuters.com/en/glossary/bonus-depreciation). Unless the government makes changes, accelerated depreciation drops to 40% in 2025 and will continue to drop 20% every year until the incentive expires after 2026.  If you’re even thinking about taking advantage of Section 179 this year, you need to get started on those new purchases. As mentioned above, your equipment must be put into service before midnight on December 31, 2024 to qualify for the deduction. It only takes a moment to [request a quote](https://www.sstlift.com/material-handling-help). We’ll respond with the info you need to make an informed decision. Contact us online, by phone at (800) 226-2345 or in person at one of our [ten locations](https://www.sstlift.com/locations) throughout Georgia and Florida GEORGIA: Albany, Macon, Midland, Valdosta FLORIDA: Jacksonville, Ocala, Orlando, Lakeland, Tampa, Winter Haven **Further Reading:** [How to Choose the Right Type of Forklift](https://www.sstlift.com/blog/how-to-buy-the-best-forklift-georgia-florida) [Repair Vs. Replace Your Forklift: What Equipment Managers Need To Know](https://www.sstlift.com/blog/repair-vs.-replace-your-forklift) [3 Reasons Moving to Electric Will Re-Energize Your Business](https://www.sstlift.com/blog/electric-forklift-benefits) [3 Common Misconceptions About Electric Forklifts](https://www.sstlift.com/blog/3-common-misconceptions-about-electric-forklifts) [![See Our Specials for Forklift Savings](https://no-cache.hubspot.com/cta/default/2513113/394d6175-4ddf-48c7-bf69-0093e9268bbe.png)](https://cta-redirect.hubspot.com/cta/redirect/2513113/394d6175-4ddf-48c7-bf69-0093e9268bbe) Topics:[Scissor Lift](https://www.sstlift.com/blog/topic/scissor-lift)[New Equipment](https://www.sstlift.com/blog/topic/new-equipment)[Used Equipment](https://www.sstlift.com/blog/topic/used-equipment)[Warehouse Solutions](https://www.sstlift.com/blog/topic/warehouse-solutions)[Pallet Rack](https://www.sstlift.com/blog/topic/pallet-rack)[Utility Vehicles](https://www.sstlift.com/blog/topic/utility-vehicles)[Aerial Equipment](https://www.sstlift.com/blog/topic/aerial-equipment) ### The SST Blog Want to increase your productivity, increase your safety, and increase your profits? 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All Rights Reserved. [Terms & Conditions](https://www.sstlift.com/terms-conditions) ![](https://px.ads.linkedin.com/collect/?pid=5227130&fmt=gif) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Adam Gavrun", "url" : "https://www.sstlift.com/blog/author/adam-gavrun" }, "dateModified" : "2024-10-18T17:59:18.172Z", "datePublished" : "2024-10-17T16:30:00.000Z", "headline" : "IRS Section 179 Tax Deduction [UPDATED FOR 2024]", "image" : [ "https://www.sstlift.com/hubfs/Blog%20Images/SST%20Blog%20-%20Using%20the%20Section%20179%20Tax%20Deduction%20for%20New%20Forklift%20Purchases%20in%202020.png" ], "mainEntityOfPage" : { "@id" : "https://www.sstlift.com/blog/section-179-tax-deduction-2024", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.sstlift.com/hubfs/SST-Logo-Transparent%20400px.png" }, "name" : "Southern States Toyotalift" } } ```