Unlock Major Tax Savings in 2026: How Section 179 Helps You Write Off Used CNC & Fabrication Machinery

If your shop is planning to upgrade equipment this year, Section 179 might be the most valuable tax incentive available — and every used machine sold by Concord Machine Tools qualifies.

For 2026, businesses can write off up to $2,560,000 in qualifying equipment purchases, including used CNC machines, fabrication equipment, manual machines, and more. This powerful deduction lets you expense the full purchase price in the same tax year rather than depreciating it slowly over time. According to Section179.org , this benefit applies to both new and used equipment as long as it’s “new to your business” and placed in service before year‑end.

Below, we break down what Section 179 means for manufacturers, job shops, tool & die operations, and fabrication facilities — and how you can leverage it to reduce your tax bill while modernizing your shop.

What Is Section 179?

Section 179 is a federal tax deduction designed to help small and mid‑sized businesses invest in equipment. Instead of depreciating machinery over several years, you can deduct the entire purchase price in the year the equipment is placed in service.

2026 Section 179 Highlights

Deduction limit: Up to $2,560,000
Phase‑out threshold: Begins at $4,090,000 in total equipment purchases
Applies to: New and used equipment
Deadline: Equipment must be purchased, installed, and operational by December 31, 2026
Bonus depreciation: May apply after Section 179 is used, depending on current IRS rules

These figures come directly from Section179.org’s 2026 guidance .

Used Machinery Qualifies — And That’s Great News for Buyers

One of the biggest advantages of Section 179 is that used equipment qualifies as long as it’s new to your business. That means every CNC machine, press brake, lathe, mill, saw, or fabrication tool you purchase from Concord Machine Tools can be written off under Section 179.

Eligible categories include:

CNC machining centers (vertical & horizontal)
CNC turning centers
Fabrication machinery (press brakes, shears, lasers, punches)
Manual mills & lathes
EDM equipment
Toolroom machinery
Specialized production equipment

If it’s used in your business and placed in service this year, it likely qualifies.

Why Section 179 Matters for Manufacturing Shops

Section 179 isn’t just a tax perk — it’s a strategic tool for improving cash flow, accelerating modernization, and staying competitive.

Key benefits:

Immediate tax savings: Reduce your 2026 tax liability right away
Lower effective equipment cost: A machine’s “net cost” after tax savings can be dramatically lower
Cash flow flexibility: You can still claim Section 179 even if you finance the equipment
Faster ROI: Put upgraded machinery to work immediately while capturing full-year tax benefits

Section179.org emphasizes that financed equipment still qualifies for the full deduction as long as it’s placed in service during the tax year .

Example: How Much Can You Save?

Let’s say you purchase a $150,000 CNC machining center.

If you qualify for the full Section 179 deduction and your tax rate is 35%:

Full deduction: $150,000
Estimated tax savings: $52,500
Effective net cost: $97,500

That’s the power of Section 179 — real savings that help shops reinvest in tooling, staffing, automation, and growth.

Don’t Wait — Section 179 Requires “Placed in Service” by Year-End

To claim the deduction for 2026, your equipment must be:

Purchased
Delivered
Installed
Fully operational

…before December 31, 2026.

Section179.org stresses that simply ordering or paying for equipment is not enough — it must be ready for use in your business .

If you’re planning to add machinery this year, now is the time to secure your equipment and schedule installation.

Why Buy Your Section 179-Eligible Equipment from Concord Machine Tools?

At Concord Machine Tools, every machine we sell — CNC, fabrication, manual, or specialty — qualifies for Section 179. That means you can:

Upgrade your shop with high-quality used machinery
Capture major tax savings
Reduce your effective equipment cost
Modernize your workflow without waiting years for depreciation

We maintain a continually updated inventory of late-model CNC machines, fabrication equipment, and toolroom machinery from top brands like Haas, Mazak, Okuma, Doosan, Amada, Makino, and more.

Whether you’re expanding capacity, replacing aging equipment, or adding new capabilities, Section 179 makes 2026 an ideal year to invest.

Ready to Take Advantage of Section 179?

If you want to maximize your tax savings this year, we can help you:

Identify qualifying machinery
Plan purchases around year-end deadlines
Explore financing options
Secure equipment that fits your workflow and budget

Browse our current inventory or contact us directly to discuss your equipment needs.

Final Reminder

Section 179 is one of the most powerful tax incentives available to manufacturers — and used machinery qualifies. With a $2,560,000 deduction limit, 2026 offers an exceptional opportunity to upgrade your shop while keeping more of your money.

Always consult your tax professional for guidance specific to your business.