US Section 179 deduction for imported machinery
Section 179 lets a US business deduct the full price of qualifying equipment the year it is placed in service. This page explains how it applies to an imported press brake or laser, the limits to watch, and that the figures change yearly.
In the United States, Section 179 of the tax code lets a business deduct the full purchase price of qualifying equipment in the year it is placed in service, rather than depreciating it over years. For a press brake or laser that is a meaningful cash-flow advantage — but the rules have limits and they change, so treat this as background and confirm the current figures with your tax professional.
The basic idea
Instead of writing the machine off over its useful life, Section 179 allows an immediate deduction up to an annual limit, with the remainder depreciated normally or under bonus depreciation. The effect is to bring the tax saving forward, improving the year-one economics of the purchase.
Does it apply to imported equipment?
Yes. Section 179 is about the use of the equipment, not where it was made. A press brake or laser bought for use in a US trade or business qualifies regardless of country of origin, as long as it is used predominantly in the United States. Keep the import paperwork — commercial invoice, entry documents, proof of payment — with the tax records, because the deduction rests on the asset being purchased and placed in service.
Limits and timing to watch
- The annual deduction limit and the investment phase-out threshold are set each year — verify the current numbers.
- The equipment must be placed in service in the tax year you claim it, not merely ordered or shipped.
- Bonus depreciation may apply on top of or instead of Section 179 depending on the year and the business form.
A note on the limits
This page is general information, not tax advice. The deduction limit, phase-out and bonus depreciation rates change with legislation, and eligibility depends on your business structure and income. Confirm the current figures and your specific situation with a qualified US tax advisor before relying on them in a purchase decision.
Questions we get asked
Does Section 179 apply to imported machinery?
Yes. Section 179 is based on the use of the equipment in a US trade or business, not its country of origin. A press brake or laser used predominantly in the United States qualifies regardless of where it was built. Keep the import paperwork with your tax records.
What is the annual deduction limit?
The limit is set each year by legislation and changes over time, so confirm the current figure with a tax professional rather than relying on a number from a web page. The same applies to any investment phase-out threshold and bonus depreciation rate.
When must the machine be in service to claim it?
In the tax year you claim the deduction. The equipment must be placed in service during that year, not merely ordered or in transit. Plan the purchase and shipping so the machine is operational before the year-end you intend to claim.
Is this tax advice I can rely on?
No. This is general background. The deduction limits, phase-out and bonus depreciation rates change with legislation, and eligibility depends on your business form and income. Confirm the current rules and your situation with a qualified US tax advisor before making a purchase decision.
Plan the purchase with the tax timing in mind
If you are a US buyer using Section 179, tell us your target in-service date and we will help time the build and shipment so the machine is operational in the year you intend to claim.