Planning an office technology upgrade before year-end? Understanding how Section 179 may apply to office equipment and IT hardware could help your business make more informed purchasing decisions.
Section 179 of the IRS tax code allows eligible businesses to deduct the cost of certain qualifying equipment in the year it is placed in service, subject to applicable limitations.
From copiers and production printers to IT hardware, business phone equipment, and physical security systems, understanding this potential tax benefit can be a useful part of your year-end planning.
Planning an equipment upgrade? KDI’s Office Technology Assessment can help you evaluate your current equipment and explore your options.
Schedule An Office Technology Assessment →
What Is Section 179?
Section 179 is a provision of the Internal Revenue Code that allows businesses to elect to deduct some or all of the cost of qualifying property in the year it is placed in service, rather than recovering that cost through depreciation over several years.
For tax years beginning in 2026, the IRS has established the following general limits:
- $2,560,000: Maximum Section 179 deduction, subject to applicable limitations.
- $4,090,000: Qualifying property investment threshold at which the maximum deduction begins to decrease.
- December 31, 2026: Deadline for qualifying equipment to be placed in service for calendar-year taxpayers seeking a 2026 deduction.
These are general federal limits, not guaranteed deductions. Actual eligibility and deductible amounts depend on several factors, including business income, equipment use, and applicable tax rules.
For official information, visit IRS Publication 946: How to Depreciate Property.
What Types of Office Technology May Qualify for Section 179?
The IRS identifies certain machinery, equipment, computer software, and other business property as potentially eligible for Section 179 deductions.
Depending on the equipment and circumstances, several types of technology used by businesses may qualify.
Copiers and Multifunction Printers
If your office is still relying on an aging copier or printer, an upgrade could mean faster printing, better scanning capabilities, and fewer interruptions to your workday.
Copiers, printers, and multifunction devices used for business purposes may qualify for Section 179 deductions, subject to IRS eligibility requirements.
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Production, Wide Format, and Thermal Printing Equipment
From high-volume document production and oversized graphics to barcode labels and product identification, specialized printing equipment plays an important role in many businesses.
Production printers, wide format printers, thermal printers, and related equipment may qualify for Section 179 deductions, subject to IRS requirements.
Explore Production Print, Wide Format, and Thermal Printing solutions. →
Mailing and Document Handling Equipment
Preparing large volumes of outgoing mail can be time-consuming, especially when employees are manually printing, folding, and inserting documents.
Equipment such as envelope printers, folders, and inserters can help simplify the process. Qualifying mailing and document handling equipment may be eligible for Section 179 deductions, subject to IRS requirements and the terms of the equipment arrangement.
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IT Hardware and Infrastructure
Outdated computers, aging servers, and unreliable network equipment can slow down daily operations. Upgrading these systems can help employees work more efficiently while improving reliability and security.
Computers, laptops, servers, networking equipment, and certain qualifying off-the-shelf business software may be eligible for Section 179 deductions, subject to IRS requirements.
Managed IT services, cloud subscriptions, and other recurring services should be evaluated separately. Businesses should consult their tax advisors to determine eligibility.
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Business Phone Equipment
Modern business communications systems can help employees stay connected, collaborate more effectively, and support customers from virtually anywhere.
Certain physical business phone equipment may qualify for Section 179 treatment, depending on its classification, ownership, and business use.
Cloud communications subscriptions and related services should be evaluated separately.
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Physical Security Systems
Physical security investments can help businesses protect their facilities, employees, and assets.
Under Section 179, certain qualifying security system improvements to nonresidential real property may be eligible for deductions, subject to applicable IRS requirements and limitations.
Businesses considering security cameras, access control systems, or other physical security improvements should consult their tax advisors to determine whether specific equipment and installation costs qualify. Subscription and monitoring services should be evaluated separately.
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Why Year-End Equipment Planning Matters
For businesses operating on a calendar tax year, qualifying equipment generally must be placed in service by December 31, 2026, to be considered for a 2026 Section 179 deduction.
Simply ordering or paying for equipment before year-end may not be sufficient. Equipment generally must be ready and available for its intended business use.
Depending on the technology, equipment selection, delivery, installation, and configuration can take time.
Starting the conversation early gives businesses an opportunity to evaluate their needs, explore available solutions, and plan implementation without unnecessary last-minute pressure.
Planning an Office Technology Upgrade? KDI Can Help.
Whether you’re replacing an aging copier, updating your IT infrastructure, or considering other office technology improvements, the right equipment should make your business run better, not just offer a potential tax benefit.
At KDI, we help businesses evaluate their current technology, identify what’s no longer meeting their needs, and explore solutions that make sense for their operations and budgets.
Not sure where to start? An Office Technology Assessment can help identify inefficiencies, evaluate your current equipment, and uncover opportunities to improve productivity and reduce costs before investing in new technology.
With local teams serving businesses throughout Pennsylvania, New Jersey, and Delaware, KDI provides technology solutions backed by experienced, local service and support.
Schedule An Office Technology Assessment →
Frequently Asked Questions About Section 179
Can a business deduct the cost of a copier or printer under Section 179?
Copiers, printers, and multifunction devices used for business purposes may qualify for Section 179 deductions, subject to IRS eligibility requirements and limitations. Businesses should consult their tax advisors to determine whether a specific purchase qualifies.
Does Section 179 apply to computers, servers, and networking equipment?
Certain computers, servers, networking equipment, and other business IT hardware may qualify for Section 179 treatment. Eligibility depends on the equipment, its business use, and applicable tax rules.
Does Section 179 apply to leased or financed office equipment?
Certain equipment acquired through financing arrangements may qualify for Section 179 deductions, depending on the terms of the agreement and applicable tax rules. Not all leases qualify, and different financing structures may receive different tax treatment.
Businesses should consult their tax advisors to determine whether a particular purchase, lease, or financing arrangement is eligible.
Do business phone systems and security equipment qualify for Section 179?
Certain business phone hardware and qualifying physical security equipment may be eligible for Section 179 treatment. Cloud subscriptions, service agreements, and recurring expenses should be evaluated separately.
Does equipment have to be installed by December 31, 2026?
For calendar-year taxpayers seeking a 2026 deduction, qualifying equipment generally must be placed in service by December 31, 2026. This means the equipment must be ready and available for its intended business use. Simply placing an order before year-end may not be sufficient.
Where can I find official information about Section 179?
The IRS provides information about qualifying property, eligibility requirements, and deduction limitations in Publication 946: How to Depreciate Property. Businesses should consult their tax advisors to understand how these rules apply to their circumstances.
Explore Related Solutions
- Copiers Printers & MFPs — Explore copiers, printers, and multifunction devices designed to streamline printing, scanning, and document workflows.
- Production Print — Discover solutions for higher-volume and specialized printing.
- Managed Print Services — Learn how KDI can help manage your print environment and improve efficiency.
- Thermal Printing Solutions — Explore barcode and label printing solutions for business operations.
Disclaimer: This article is provided for general informational and educational purposes only and does not constitute tax, accounting, or legal advice. KDI Office Technology does not determine eligibility for tax deductions or guarantee any particular tax benefit. Section 179 deductions are subject to applicable IRS rules, eligibility requirements, and limitations. Businesses should consult their qualified tax advisors before making purchasing decisions based on potential tax benefits. For official guidance, refer to IRS Publication 946.
