WHAT ARE THE SECTION 179 TAX DEDUCTION LIMITS FOR 2022?
The Section 179 tax code was established to primarily benefit small- and medium-sized businesses. That's why there are certain spending limits in place that affect the total amount a company is able to deduct. For 2022, the Section 179 limits are:
- 2022 Deduction Limit: $1,080,0001 -- valid on new and used equipment (must be new to the buyer)
- 2022 Spending Cap: $2,700,0001 -- the max amount that can be spent on equipment before the Section 179 tax deduction begins to reduce on a dollar-for-dollar basis
- 2022 Bonus Depreciation: 100%1 -- generally taken after the Spending Cap is reached, valid on new and used equipment