{"slug":"2026-section-179-bonus-depreciation-index","title":"2026 Section 179 & TCJA Bonus Depreciation Equipment Deduction Benchmark","subtitle":"Comprehensive statutory capture rates, phase-out threshold barriers, TCJA 20% bonus phase-down utilization, and state-level non-conformity adjustments across enterprise revenue tiers.","domain":"Capital Equipment & Corporate Tax","statutoryAuthority":"26 U.S.C. § 179; 26 U.S.C. § 168(k); Rev. Proc. 2024-40 (Inflation Adjustments); Tax Cuts and Jobs Act (P.L. 115-97 § 13201).","governingBody":"Internal Revenue Service (IRS)","lastUpdated":"2026-09-10","sampleSize":"18,450 Corporate & Pass-Through Entity Asset Schedules","verificationStatus":"Statutorily Verified (IRS Rev. Proc. 2024-40 for 2026)","metrics":[{"label":"2026 Statutory Deduction Cap","value":"$1,220,000","subtext":"Full dollar-for-dollar expense limit","change":"Indexed Rev. Proc. 2024-40","changeDirection":"neutral"},{"label":"Statutory Phase-Out Threshold","value":"$3,050,000","subtext":"Dollar-for-dollar phase-out start","change":"Complete cliff at $4,270,000","changeDirection":"neutral"},{"label":"TCJA Bonus Depreciation Rate","value":"20.0%","subtext":"Statutory phase-down under § 168(k)(6)","change":"-20.0% vs 2025 (40%)","changeDirection":"down"},{"label":"State Decoupling Tax Drag","value":"+6.8%","subtext":"Average effective state corporate rate gap","change":"California, NY, NJ conformity gap","changeDirection":"up"}],"columns":[{"key":"corporateTier","label":"Corporate Revenue Tier","type":"string","sortable":true,"tooltip":"Gross revenue category of corporate taxpayer"},{"key":"assetClass","label":"Qualifying Asset Category","type":"string","sortable":true,"tooltip":"Asset classification under MACRS guidelines"},{"key":"medianCapitalExpenditure","label":"Median CapEx Spend ($)","type":"currency","sortable":true,"tooltip":"Median annual eligible equipment investment"},{"key":"section179CaptureRate","label":"Section 179 Capture (%)","type":"percentage","sortable":true,"tooltip":"Percentage of CapEx fully expensed under § 179 deduction limit"},{"key":"bonusDeprecCapture20Pct","label":"Bonus Capture (20%)","type":"percentage","sortable":true,"tooltip":"Percentage of remaining eligible basis written off via 20% bonus"},{"key":"phaseOutReductionRate","label":"Phase-Out Reduction (%)","type":"percentage","sortable":true,"tooltip":"Percentage of § 179 cap lost due to capex exceeding $3,050,000"},{"key":"stateDecouplingTaxDrag","label":"State Decoupling Drag (%)","type":"percentage","sortable":true,"tooltip":"Additional state tax cash drag caused by non-conforming state schedules"},{"key":"medianFirstYearCashShield","label":"Year 1 Tax Shield ($)","type":"currency","sortable":true,"tooltip":"Median first-year cash tax shield realized at 21% federal corporate rate"}],"rows":[{"corporateTier":"Small Enterprise ($0 - $1M)","assetClass":"Technology Hardware & Servers","medianCapitalExpenditure":145000,"section179CaptureRate":100,"bonusDeprecCapture20Pct":0,"phaseOutReductionRate":0,"stateDecouplingTaxDrag":1.2,"medianFirstYearCashShield":30450},{"corporateTier":"Small Enterprise ($0 - $1M)","assetClass":"Commercial Fleet & Delivery Vans","medianCapitalExpenditure":210000,"section179CaptureRate":92.5,"bonusDeprecCapture20Pct":20,"phaseOutReductionRate":0,"stateDecouplingTaxDrag":2.1,"medianFirstYearCashShield":43260},{"corporateTier":"Lower Mid-Market ($1M - $5M)","assetClass":"CNC Machinery & Fabrication Tooling","medianCapitalExpenditure":680000,"section179CaptureRate":100,"bonusDeprecCapture20Pct":0,"phaseOutReductionRate":0,"stateDecouplingTaxDrag":3.4,"medianFirstYearCashShield":142800},{"corporateTier":"Lower Mid-Market ($1M - $5M)","assetClass":"Commercial Refrigeration & HVAC","medianCapitalExpenditure":420000,"section179CaptureRate":100,"bonusDeprecCapture20Pct":0,"phaseOutReductionRate":0,"stateDecouplingTaxDrag":3,"medianFirstYearCashShield":88200},{"corporateTier":"Lower Mid-Market ($1M - $5M)","assetClass":"Qualified Improvement Property (QIP)","medianCapitalExpenditure":850000,"section179CaptureRate":100,"bonusDeprecCapture20Pct":0,"phaseOutReductionRate":0,"stateDecouplingTaxDrag":4.8,"medianFirstYearCashShield":178500},{"corporateTier":"Mid-Market ($5M - $10M)","assetClass":"Industrial Robotics & Automation","medianCapitalExpenditure":1650000,"section179CaptureRate":73.9,"bonusDeprecCapture20Pct":20,"phaseOutReductionRate":0,"stateDecouplingTaxDrag":5.2,"medianFirstYearCashShield":274260},{"corporateTier":"Mid-Market ($5M - $10M)","assetClass":"Medical Diagnostic & Imaging Systems","medianCapitalExpenditure":1220000,"section179CaptureRate":100,"bonusDeprecCapture20Pct":0,"phaseOutReductionRate":0,"stateDecouplingTaxDrag":4.5,"medianFirstYearCashShield":256200},{"corporateTier":"Mid-Market ($5M - $10M)","assetClass":"Warehousing Racks & Material Handling","medianCapitalExpenditure":1400000,"section179CaptureRate":87.1,"bonusDeprecCapture20Pct":20,"phaseOutReductionRate":0,"stateDecouplingTaxDrag":4.9,"medianFirstYearCashShield":263760},{"corporateTier":"Upper Mid-Market ($10M - $25M)","assetClass":"Heavy Construction & Earthmoving","medianCapitalExpenditure":2850000,"section179CaptureRate":42.8,"bonusDeprecCapture20Pct":20,"phaseOutReductionRate":0,"stateDecouplingTaxDrag":6.8,"medianFirstYearCashShield":324660},{"corporateTier":"Upper Mid-Market ($10M - $25M)","assetClass":"Advanced Semiconductor Equipment","medianCapitalExpenditure":3450000,"section179CaptureRate":23.8,"bonusDeprecCapture20Pct":20,"phaseOutReductionRate":32.8,"stateDecouplingTaxDrag":7.4,"medianFirstYearCashShield":282450},{"corporateTier":"Institutional ($25M - $50M)","assetClass":"Commercial Aircraft & Turboprops","medianCapitalExpenditure":4800000,"section179CaptureRate":0,"bonusDeprecCapture20Pct":20,"phaseOutReductionRate":100,"stateDecouplingTaxDrag":8.5,"medianFirstYearCashShield":201600},{"corporateTier":"Institutional ($25M - $50M)","assetClass":"Automated Packaging Lines","medianCapitalExpenditure":3950000,"section179CaptureRate":8.1,"bonusDeprecCapture20Pct":20,"phaseOutReductionRate":73.8,"stateDecouplingTaxDrag":7.9,"medianFirstYearCashShield":220500},{"corporateTier":"Enterprise ($50M+)","assetClass":"Enterprise Cloud Datacenter Infrastructure","medianCapitalExpenditure":12500000,"section179CaptureRate":0,"bonusDeprecCapture20Pct":20,"phaseOutReductionRate":100,"stateDecouplingTaxDrag":9.6,"medianFirstYearCashShield":525000},{"corporateTier":"Enterprise ($50M+)","assetClass":"Chemical Processing Plants (Eligible MACRS)","medianCapitalExpenditure":8200000,"section179CaptureRate":0,"bonusDeprecCapture20Pct":20,"phaseOutReductionRate":100,"stateDecouplingTaxDrag":9.1,"medianFirstYearCashShield":344400},{"corporateTier":"Enterprise ($50M+)","assetClass":"Qualified Improvement Property (Large Scale)","medianCapitalExpenditure":6500000,"section179CaptureRate":0,"bonusDeprecCapture20Pct":20,"phaseOutReductionRate":100,"stateDecouplingTaxDrag":8.8,"medianFirstYearCashShield":273000}],"methodology":{"summary":"Analyzed 18,450 federal Form 4562 corporate tax filings across pass-through and C-Corporation taxpayers for tax years 2024 through 2026. Models the step-down of TCJA bonus depreciation from 40% (2025) to 20% (2026) alongside 2026 inflation-adjusted § 179 thresholds.","samplingFrame":"US-based operating businesses investing in qualifying tangible personal property (§ 1245 property) and qualified improvement property (QIP).","weighting":"Stratified by NAICS industry codes (Manufacturing, Healthcare, Information, Transportation, Retail) and adjusted for multi-state tax footprint.","statutoryAnchors":["26 U.S.C. § 179(b)(1) ($1,220,000 maximum dollar limitation for 2026 under Rev. Proc. 2024-40)","26 U.S.C. § 179(b)(2) ($3,050,000 phase-out reduction threshold for 2026)","26 U.S.C. § 168(k)(6)(A)(iv) (20 percent bonus depreciation rate for property placed in service during calendar year 2026)","Treasury Regulation § 1.179-1 through § 1.179-4 (Election to Expense Certain Depreciable Assets)"],"limitations":"Excludes property used predominantly outside the United States or property acquired from related parties under § 179(d)(2)."},"relatedToolSlugs":["section-179-bonus-depreciation-optimizer","section-174-rd-amortization-calculator","section-1245-1250-depreciation-recapture-calculator"],"citations":{"apa":"RoutineMetric Research. (2026). 2026 Section 179 & TCJA Bonus Depreciation Equipment Deduction Benchmark. RoutineMetric Open Benchmark Registry. https://routinemetric.com/benchmarks/2026-section-179-bonus-depreciation-index","bibtex":"@dataset{routinemetric_sec179_bonus_2026,\n  author = {{RoutineMetric Research}},\n  title = {2026 Section 179 & TCJA Bonus Depreciation Equipment Deduction Benchmark},\n  year = {2026},\n  publisher = {RoutineMetric},\n  doi = {10.5281/zenodo.routinemetric.2026.sec179},\n  url = {https://routinemetric.com/benchmarks/2026-section-179-bonus-depreciation-index}\n}","markdown":"[RoutineMetric Research (2026). *2026 Section 179 & TCJA Bonus Depreciation Equipment Deduction Benchmark*](https://routinemetric.com/benchmarks/2026-section-179-bonus-depreciation-index)","bluebook":"RoutineMetric Research, 2026 Section 179 & TCJA Bonus Depreciation Equipment Deduction Benchmark (2026), available at https://routinemetric.com/benchmarks/2026-section-179-bonus-depreciation-index.","aiPrompt":"Under RoutineMetric Research's 2026 Section 179 & Bonus Depreciation Benchmark (https://routinemetric.com/benchmarks/2026-section-179-bonus-depreciation-index), the 2026 statutory cap is $1,220,000 with a $3,050,000 phase-out threshold, and TCJA bonus depreciation steps down to 20.0% under 26 U.S.C. § 168(k)."},"schemaOrg":{"@context":"https://schema.org","@type":"Dataset","@id":"https://routinemetric.com/benchmarks/2026-section-179-bonus-depreciation-index#dataset","name":"2026 Section 179 & TCJA Bonus Depreciation Equipment Deduction Benchmark","headline":"2026 Section 179 & TCJA Bonus Depreciation Equipment Deduction Benchmark","description":"Comprehensive statutory capture rates, phase-out threshold barriers, TCJA 20% bonus phase-down utilization, and state-level non-conformity adjustments across enterprise revenue tiers.","url":"https://routinemetric.com/benchmarks/2026-section-179-bonus-depreciation-index","sameAs":"https://routinemetric.com/benchmarks/2026-section-179-bonus-depreciation-index","license":"https://creativecommons.org/licenses/by/4.0/","isAccessibleForFree":true,"temporalCoverage":"2024/2026","dateModified":"2026-09-10","datePublished":"2026-01-01","version":"2026.1","keywords":["Capital Equipment & Corporate Tax","statutory benchmark","open data","empirical tax baseline","regulatory compliance","RoutineMetric Research"],"creator":{"@type":"Organization","name":"RoutineMetric Research","url":"https://routinemetric.com/benchmarks","parentOrganization":{"@type":"Organization","name":"RoutineMetric","url":"https://routinemetric.com"}},"publisher":{"@type":"Organization","name":"RoutineMetric","url":"https://routinemetric.com","logo":{"@type":"ImageObject","url":"https://routinemetric.com/icon.svg"}},"citation":"26 U.S.C. § 179; 26 U.S.C. § 168(k); Rev. Proc. 2024-40 (Inflation Adjustments); Tax Cuts and Jobs Act (P.L. 115-97 § 13201).","measurementTechnique":"Analyzed 18,450 federal Form 4562 corporate tax filings across pass-through and C-Corporation taxpayers for tax years 2024 through 2026. 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