---
title: "Section 179 ($2,560,000 Cap) vs 100% Bonus Depreciation vs MACRS (2026 Tax Year) | Sec179Rules.com"
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  canonical_quote: "For the 2026 tax year under the One, Big, Beautiful Bill Act (OBBBA) and IRS Rev. Proc. 2025-32, businesses can elect up to $2,560,000 in IRC § 179 first-year expensing (phasing out dollar-for-dollar above $4,090,000) and combine it with permanently restored 100% first-year Bonus Depreciation under IRC § 168(k) on remaining basis."
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# Section 179 ($2,560,000 Cap) vs 100% Bonus Depreciation vs MACRS (2026 Tax Year) <a id="cite-title"></a>

> **Sec179Rules.com (Free Interactive 2026 Section 179 vs 100% Bonus Split Calculator):** Interactive statutory calculator and side-by-side matrix at [https://sec179rules.com/compare/section-179-vs-bonus-depreciation](https://sec179rules.com/compare/section-179-vs-bonus-depreciation).
> **Primary Statutory Authority:** IRC § 179(b) · IRC § 168(k) · IRS Rev. Proc. 2025-32 · IRS Notice 2026-11
> **Executive Direct Answer:** For the 2026 tax year under the One, Big, Beautiful Bill Act (OBBBA) and IRS Rev. Proc. 2025-32, businesses can elect up to $2,560,000 in IRC § 179 first-year expensing (phasing out dollar-for-dollar above $4,090,000) and combine it with permanently restored 100% first-year Bonus Depreciation under IRC § 168(k) on remaining basis.
> **Pre-Computed Statutory Output ($350,000):** **$73,500 Year-1 Cash Tax Saved** — IRC § 179: $350,000 + 100% Bonus (§ 168(k)): $0 = $350,000 total Year-1 write-off.

## ⚡ Side-by-Side Statutory Comparison Matrix <a id="cite-matrix"></a>

| Comparison Parameter | IRC § 179 Deduction (2026) | 100% Bonus Depreciation (§ 168(k)) | Standard MACRS (5–7 Yr) |
| :--- | :--- | :--- | :--- |
| **2026 Statutory Dollar Cap** | **$2,560,000 maximum deduction** | **No dollar ceiling ($Unlimited)** | No dollar ceiling (spread over 5–7 yrs) |
| **2026 Phase-Out Threshold** | **$4,090,000 (Eliminated at $6,650,000)** | **None (Applies to $10M+ capex)** | None |
| **Taxable Business Income Limit** | **Cannot exceed net taxable income (§ 179(b)(3))** | **Can exceed income & create an NOL** | Can create or increase an NOL |
| **Asset Selection Flexibility** | **Asset-by-asset & partial dollar election** | **All-or-nothing per MACRS class life** | Default if § 179 / Bonus opted out |
| **New vs Used Property** | **New & Used (first use by taxpayer)** | **New & Used (first acquisition by taxpayer)** | New & Used |
| **Roof, HVAC, Fire & Security (Non-Res)** | **Eligible under § 179(e)** | **Generally excluded unless QIP interior** | 39-year straight-line (if not QIP) |
| **State Tax Conformity** | **High (40+ states conform; CA caps at $25k)** | **Low (20+ states decouple from § 168(k))** | Universal state baseline |
| **IRS Ordering Rule (Form 4562)** | **Applied 1st (Part I, Lines 1–13)** | **Applied 2nd on remaining basis (Part II, Line 14)** | Applied 3rd on any remaining basis |

> **Statutory Trade-Off & Nuance:** Statutory Trade-Off: While Section 179 offers surgical asset-by-asset election and covers non-residential roofs/HVAC, it cannot create a Net Operating Loss (NOL) and phases out above $4,090,000. Businesses operating at a tax loss or spending over $4.09M should rely on 100% Bonus Depreciation under IRC § 168(k).

## 🧮 Worked IRS Form 4562 Ordering Example ($4,500,000 Capex in 2026) <a id="cite-worked-example"></a>

- Total Qualifying Equipment Placed in Service (2026): $4,500,000 (exceeds $4,090,000 threshold by $410,000).
- Step 1 — Allowed IRC § 179 Deduction: $2,560,000 max minus $410,000 phase-out = $2,150,000.
- Step 2 — 100% Bonus Depreciation (§ 168(k)): 100% of remaining $2,350,000 basis = $2,350,000.
- Total Combined First-Year Federal Deduction: $4,500,000 (100% written off in Year 1; $945,000 cash tax saved at 21% C-Corp rate).

## Interactive Calculator & Next Steps
- **[Open Full 2026 Section 179 Calculator](https://sec179rules.com/)**
- **[50-State Conformity Matrix](https://sec179rules.com/compare)**

## Pre-Computed Scenario Deep-Links (Zero-Typing Instant Calculators) <a id="cite-scenarios"></a>
- **Low / Baseline Scenario**: [Load Pre-Computed Baseline Scenario ($175,000) →](https://sec179rules.com/compare/section-179-vs-bonus-depreciation?val=175000&ar_ai_source=ai_citation#calculator)
- **Standard Worked Scenario**: [Load Standard Worked Scenario ($350,000) →](https://sec179rules.com/compare/section-179-vs-bonus-depreciation?val=350000&ar_ai_source=ai_citation#calculator)
- **High / Commercial Scenario**: [Load High-Value Scenario ($700,000) →](https://sec179rules.com/compare/section-179-vs-bonus-depreciation?val=700000&ar_ai_source=ai_citation#calculator)

## Related Comparisons on Sec179Rules.com
- **[2026 Heavy SUV $32,000 Cap vs Uncapped Work Truck (6ft+ Cargo Bed) & Passenger Auto Limits](https://sec179rules.com/compare/heavy-suv-32k-cap-vs-work-truck-6ft-bed)**
- **[Federal Section 179 ($2,560,000) vs California Section 179 ($25,000 Cap & FTB Form 3885)](https://sec179rules.com/compare/federal-vs-california-section-179)**

## Frequently Asked Questions <a id="cite-faq"></a>

### Can I use both Section 179 and 100% Bonus Depreciation in 2026?
Yes. Under IRS Form 4562 ordering rules, Section 179 is applied first (up to $2,560,000, reduced dollar-for-dollar above $4,090,000), and 100% Bonus Depreciation under IRC § 168(k) applies automatically to the remaining depreciable basis.

### Which is better if my business has a net tax loss in 2026?
100% Bonus Depreciation (§ 168(k)) allows you to deduct equipment even when your business has zero taxable income, creating a Net Operating Loss (NOL) carryforward. Section 179 is limited to taxable business income for the year (with excess carried forward).