Source: https://www.law.cornell.edu/uscode/text/26/179
Timestamp: 2019-04-26 00:20:36+00:00

Document:
A taxpayer may elect to treat the cost of any section 179 property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the section 179 property is placed in service.
The aggregate cost which may be taken into account under subsection (a) for any taxable year shall not exceed $1,000,000.
The limitation under paragraph (1) for any taxable year shall be reduced (but not below zero) by the amount by which the cost of section 179 property placed in service during such taxable year exceeds $2,500,000.
The amount allowed as a deduction under subsection (a) for any taxable year (determined after the application of paragraphs (1) and (2)) shall not exceed the aggregate amount of taxable income of the taxpayer for such taxable year which is derived from the active conduct by the taxpayer of any trade or business during such taxable year.
the amount allowable as a deduction under subsection (a) for such taxable year without regard to this subparagraph.
For purposes of this paragraph, taxable income derived from the conduct of a trade or business shall be computed without regard to the deduction allowable under this section.
unless such individuals elect otherwise, 50 percent of the cost which may be taken into account under subsection (a) for such taxable year (before application of paragraph (3)) shall be allocated to each such individual.
The cost of any sport utility vehicle for any taxable year which may be taken into account under this section shall not exceed $25,000.
which is rated at not more than 14,000 pounds grossvehicle weight.
has an integral enclosure, fully enclosing the driver compartment and load carrying device, does not have seating rearward of the driver’s seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield.
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2017” for “calendar year 2016” in subparagraph (A)(ii) thereof.
The amount of any increase under subparagraph (A) shall be rounded to the nearest multiple of $10,000 ($100 in the case of any increase in the amount under paragraph (5)(A)).
be made on the taxpayer’s return of the tax imposed by this chapter for the taxable year.
Any election made under this section, and any specification contained in any such election, may be revoked by the taxpayer with respect to any property, and such revocation, once made, shall be irrevocable.
which is acquired by purchase for use in the active conduct of a trade or business.
Such term shall not include any property described in section 50(b) (other than paragraph (2) thereof).
under section 1014(a) (relating to property acquired from a decedent).
For purposes of this section, the cost of property does not include so much of the basis of such property as is determined by reference to the basis of other property held at any time by the person acquiring such property.
This section shall not apply to estates and trusts.
the term of the lease (taking into account options to renew) is less than 50 percent of the class life of the property (as defined in section 168(i)(1)), and for the period consisting of the first 12 months after the date on which the property is transferred to the lessee the sum of the deductions with respect to such property which are allowable to the lessor solely by reason of section 162 (other than rents and reimbursed amounts with respect to such property) exceeds 15 percent of the rental income produced by such property.
the Secretary shall apportion the dollar limitation contained in subsection (b)(1) among the component members of such controlled group in such manner as he shall by regulations prescribe.
For purposes of paragraphs (2) and (6), the term “controlled group” has the meaning assigned to it by section 1563(a), except that, for such purposes, the phrase “more than 50 percent” shall be substituted for the phrase “at least 80 percent” each place it appears in section 1563(a)(1).
In the case of a partnership, the limitations of subsection (b) shall apply with respect to the partnership and with respect to each partner. A similar rule shall apply in the case of an S corporation and its shareholders.
No credit shall be allowed under section 38 with respect to any amount for which a deduction is allowed under subsection (a).
The Secretary shall, by regulations, provide for recapturing the benefit under any deduction allowable under subsection (a) with respect to any property which is not used predominantly in a trade or business at any time.
Heating, ventilation, and air-conditioning property.
2018—Subsec. (d)(1)(B)(ii). Pub. L. 115–141, § 401(b)(15)(B), substituted “subsection (e)” for “subsection (f)”.
Subsecs. (e), (f). Pub. L. 115–141, § 401(b)(15)(A), redesignated subsec. (f) as (e) and struck out former subsec. (e) which related to special rules for qualified disaster assistance property.
2017—Subsec. (b)(1). Pub. L. 115–97, § 13101(a)(1), substituted “$1,000,000” for “$500,000”.
Subsec. (b)(2). Pub. L. 115–97, § 13101(a)(2), substituted “$2,500,000” for “$2,000,000”.
Subsec. (b)(6)(A). Pub. L. 115–97, § 13101(a)(3)(B)(i), substituted “paragraphs (1), (2), and (5)(A)” for “paragraphs (1) and (2)” in introductory provisions.
Pub. L. 115–97, § 13101(a)(3)(A)(i), substituted “2018” for “2015” in introductory provisions.
Subsec. (b)(6)(A)(ii). Pub. L. 115–97, § 13101(a)(3)(A)(ii), substituted “calendar year 2017” for “calendar year 2014”.
Pub. L. 115–97, § 11002(d)(1)(R), substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.
Subsec. (b)(6)(B). Pub. L. 115–97, § 13101(a)(3)(B)(ii), inserted “($100 in the case of any increase in the amount under paragraph (5)(A))” after “$10,000”.
Subsec. (d)(1). Pub. L. 115–97, § 13101(c), inserted “(other than paragraph (2) thereof)” after “section 50(b)” in concluding provisions.
Subsec. (d)(1)(B). Pub. L. 115–97, § 13101(b)(1), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “which is section 1245 property (as defined in section 1245(a)(3)), and”.
Subsec. (f). Pub. L. 115–97, § 13101(b)(2), amended subsec. (f) generally. Prior to amendment, subsec. (f) consisted of pars. (1) and (2) defining “section 179 property” and “qualified real property”, respectively.
Subsec. (b)(6). Pub. L. 114–113, § 124(f), added par. (6).
Subsec. (c)(2). Pub. L. 114–113, § 124(d), struck out “irrevocable” after “Election” in heading and “may not be revoked except with the consent of the Secretary. Any such election or specification with respect to any taxable year beginning after 2002 and before 2015” after “such election,” in text.
Subsec. (d)(1). Pub. L. 114–113, § 124(e), struck out “and shall not include air conditioning or heating units” after “section 50(b)” in concluding provisions.
Subsec. (d)(1)(A)(ii). Pub. L. 114–113, § 124(b), substituted “and to which section 167 applies” for “, to which section 167 applies, and which is placed in service in a taxable year beginning after 2002 and before 2015”.
Subsec. (f)(1). Pub. L. 114–113, § 124(c)(2)(A), struck out “beginning after 2009 and before 2016” after “any taxable year” in introductory provisions.
Pub. L. 114–113, § 124(c)(1)(A), substituted “2016” for “2015” in introductory provisions.
Subsec. (f)(4). Pub. L. 114–113, § 124(c)(2)(B), struck out par. (4) which related to limitation of carryover of amounts attributable to qualified real property.
Pub. L. 114–113, § 124(c)(1)(B), substituted “2015” for “2014” wherever appearing.
Subsec. (f)(4)(C). Pub. L. 114–113, § 124(c)(1)(C), substituted “2013, and 2014” for “and 2013” in heading.
2014—Subsec. (b)(1)(B). Pub. L. 113–295, § 127(a)(1)(A), substituted “beginning after 2009 and before 2015” for “beginning in 2010, 2011, 2012, or 2013”.
Subsec. (b)(1)(C). Pub. L. 113–295, § 127(a)(1)(B), substituted “2014” for “2013”.
Subsec. (b)(2)(B). Pub. L. 113–295, § 127(a)(2)(A), substituted “beginning after 2009 and before 2015” for “beginning in 2010, 2011, 2012, or 2013”.
Subsec. (b)(2)(C). Pub. L. 113–295, § 127(a)(2)(B), substituted “2014” for “2013”.
Subsec. (c)(2). Pub. L. 113–295, § 127(c), substituted “2015” for “2014”.
Subsec. (d)(1)(A)(ii). Pub. L. 113–295, § 127(b), substituted “2015” for “2014”.
Subsec. (f)(1). Pub. L. 113–295, § 127(d)(1), substituted “beginning after 2009 and before 2015” for “beginning in 2010, 2011, 2012, or 2013” in introductory provisions.
Subsec. (f)(4). Pub. L. 113–295, § 127(d)(2)(A), substituted “2014” for “2013” wherever appearing.
Subsec. (f)(4)(C). Pub. L. 113–295, § 127(d)(2)(B), substituted “2011, 2012, and 2013” for “2011 and 2012” in heading.
2013—Subsec. (b)(1)(B). Pub. L. 112–240, § 315(a)(1)(A), substituted “2010, 2011, 2012, or 2013, and” for “2010 or 2011,”.
Subsec. (b)(1)(C), (D). Pub. L. 112–240, § 315(a)(1)(B)–(D), redesignated subpar. (D) as (C), substituted “2013” for “2012”, and struck out former subpar. (C) which read as follows: “$125,000 in the case of taxable years beginning in 2012, and”.
Subsec. (b)(2)(B). Pub. L. 112–240, § 315(a)(2)(A), substituted “2010, 2011, 2012, or 2013, and” for “2010 or 2011,”.
Subsec. (b)(2)(C), (D). Pub. L. 112–240, § 315(a)(2)(B)–(D), redesignated subpar. (D) as (C), substituted “2013” for “2012”, and struck out former subpar. (C) which read as follows: “$500,000 in the case of taxable years beginning in 2012, and”.
Subsec. (b)(6). Pub. L. 112–240, § 315(a)(3), struck out par. (6) which related to inflation adjustment.
Subsec. (c)(2). Pub. L. 112–240, § 315(c), substituted “2014” for “2013”.
Subsec. (d)(1)(A)(ii). Pub. L. 112–240, § 315(b), substituted “2014” for “2013”.
Subsec. (f)(1). Pub. L. 112–240, § 315(d)(1), substituted “2010, 2011, 2012, or 2013” for “2010 or 2011” in introductory provisions.
Subsec. (f)(4)(A), (B). Pub. L. 112–240, § 315(d)(2)(A), substituted “2013” for “2011”.
Pub. L. 112–240, § 315(d)(2)(A), substituted “2013” for “2011” in two places.
2010—Subsec. (b)(1). Pub. L. 111–240, § 2021(a)(1), substituted “shall not exceed—” for “shall not exceed $25,000 ($250,000 in the case of taxable years beginning after 2007 and before 2011).” and added subpars. (A) to (C).
Pub. L. 111–147, § 201(a)(1), substituted “($250,000 in the case of taxable years beginning after 2007 and before 2011)” for “($125,000 in the case of taxable years beginning after 2006 and before 2011)”.
Subsec. (b)(2). Pub. L. 111–240, § 2021(a)(2), substituted “exceeds—” for “exceeds $200,000 ($800,000 in the case of taxable years beginning after 2007 and before 2011).” and added subpars. (A) to (C).
Pub. L. 111–147, § 201(a)(2), substituted “($800,000 in the case of taxable years beginning after 2007 and before 2011)” for “($500,000 in the case of taxable years beginning after 2006 and before 2011)”.
Subsec. (b)(5). Pub. L. 111–147, § 201(a)(3), (4), redesignated par. (6) as (5) and struck out former par. (5) which related to inflation adjustments.
Subsec. (b)(6). Pub. L. 111–312, § 402(c), added par. (6).
Pub. L. 111–147, § 201(a)(4), redesignated par. (6) as (5).
Subsec. (b)(7). Pub. L. 111–147, § 201(a)(3), struck out par. (7) which related to increase in limitations for 2008 and 2009.
Subsec. (c)(2). Pub. L. 111–312, § 402(e), substituted “2013” for “2012”.
Pub. L. 111–240, § 2021(c), substituted “2012” for “2011”.
Subsec. (d)(1)(A)(ii). Pub. L. 111–312, § 402(d), substituted “2013” for “2012”.
Pub. L. 111–240, § 2021(d), substituted “2012” for “2011”.
Subsec. (f). Pub. L. 111–240, § 2021(b), added subsec. (f).
Subsec. (f)(2)(B). Pub. L. 111–312, § 737(b)(3)(A), struck out “(without regard to the dates specified in subparagraph (A)(i) thereof)” after “section 168(e)(7)”.
Subsec. (f)(2)(C). Pub. L. 111–312, § 737(b)(3)(B), struck out “(without regard to subparagraph (E) thereof)” after “section 168(e)(8)”.
2009—Subsec. (b)(7). Pub. L. 111–5 substituted “2008, and 2009” for “2008” in heading and “2008, or 2009” for “2008” in introductory provisions.
2008—Subsec. (b)(7). Pub. L. 110–185 added par. (7).
Subsec. (e). Pub. L. 110–343 added subsec. (e).
2007—Subsec. (b)(1). Pub. L. 110–28, § 8212(a), (b)(1), substituted “$125,000 in the case of taxable years beginning after 2006” for “$100,000 in the case of taxable years beginning after 2002” and “2011” for “2010”.
Subsec. (b)(2). Pub. L. 110–28, § 8212(a), (b)(2), substituted “$500,000 in the case of taxable years beginning after 2006” for “$400,000 in the case of taxable years beginning after 2002” and “2011” for “2010”.
Subsec. (b)(5)(A). Pub. L. 110–28, § 8212(a), (c)(1), (2), in introductory provisions, substituted “2007” for “2003”, “2011” for “2010”, and “$125,000 and $500,000” for “$100,000 and $400,000”.
Subsec. (b)(5)(A)(ii). Pub. L. 110–28, § 8212(c)(3), substituted “2006” for “2002”.
Subsecs. (c)(2), (d)(1)(A)(ii). Pub. L. 110–28, § 8212(a), substituted “2011” for “2010”.
2006—Subsecs. (b)(1), (2), (5)(A), (c)(2), (d)(1)(A)(ii). Pub. L. 109–222 substituted “2010” for “2008”.
2004—Subsec. (b)(1), (2), (5)(A). Pub. L. 108–357, § 201, substituted “2008” for “2006”.
Subsec. (b)(6). Pub. L. 108–357, § 910(a), added par. (6).
Subsecs. (c)(2), (d)(1)(A)(ii). Pub. L. 108–357, § 201, substituted “2008” for “2006”.
2003—Subsec. (b)(1). Pub. L. 108–27, § 202(a), reenacted heading without change and amended text generally. Prior to amendment, par. (1) contained a table specifying the maximum amounts for taxable years 1997 to 2003 and thereafter which could be taken into account as the aggregate costs under subsec. (a).
Subsec. (b)(2). Pub. L. 108–27, § 202(b), inserted “($400,000 in the case of taxable years beginning after 2002 and before 2006)” after “$200,000”.
Subsec. (b)(5). Pub. L. 108–27, § 202(d), added par. (5).
Subsec. (d)(1). Pub. L. 104–188, § 1702(h)(10), struck out “in” before “a trade or business”.
1993—Subsec. (b)(1). Pub. L. 103–66 substituted “$17,500” for “$10,000”.
1990—Subsec. (d)(1). Pub. L. 101–508, § 11813(b)(11)(A), substituted “section 1245 property (as defined in section 1245(a)(3))” for “section 38 property”.
“(A) In general.—The aggregate cost of section 179 property taken into account under subsection (a) for any taxable year shall not exceed the aggregate amount of taxable income of the taxpayer for such taxable year which is derived from the active conduct by the taxpayer of any trade or business during such taxable year.
“(B) Carryover of unused cost.—The amount of any cost which (but for subparagraph (A)) would have been allowed as a deduction under subsection (a) for any taxable year shall be carried to the succeeding taxable year and added to the amount allowable as a deduction under subsection (a) for such succeeding taxable year.
Subsec. (d)(1). Pub. L. 100–647, § 1002(a)(19), substituted “tangible property (to which section 168 applies)” for “recovery property”.
Subsec. (d)(1). Pub. L. 99–514, § 202(b), inserted “in the active conduct of”.
Subsec. (d)(10). Pub. L. 99–514, § 202(c), struck out “before the close of the second taxable year following the taxable year in which it is placed in service by the taxpayer” after “at any time”.
1984—Subsec. (b)(1). Pub. L. 98–369 amended table by dropping items setting applicable amounts of $0 for 1981 and $5,000 for 1982, substituting an applicable amount of $5,000 for 1983, 1984, 1985, 1986, and 1987 for former table items which had set applicable amounts of $5,000 for 1983, $7,500 for 1984, $7,500 for 1985, and $10,000 for 1986 or thereafter, and added items setting applicable amounts of $7,500 for 1988 or 1989, and $10,000 for 1990 or thereafter.
1983—Subsec. (d)(10). Pub. L. 97–448 added par. (10).
1981—Pub. L. 97–34 amended section generally, changing its content from provisions that formerly made available an additional first-year depreciation allowance for small businesses to provisions allowing a taxpayer to elect to treat the cost of section 179 property as an expense which is not chargeable to capital account, with any cost so treated to be allowed as a deduction for the taxable year in which the section 179 property is placed in service.
1976—Subsecs. (c)(1), (2), (d)(6)(B). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (d)(8), (9). Pub. L. 94–455, § 213(a), added par. (8) and redesignated former par. (8) as par. (9).
Subsec. (e). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
1969—Subsec. (d). Pub. L. 91–172 substituted reference to component members of a controlled group for reference to members of an affiliated group in pars. (2)(B) and (b), and substituted definition of controlled group for definition of affiliated group in par. (7).
1962—Subsec. (d)(5). Pub. L. 87–834, § 13(c)(2)(A), substituted “section 167(h)” for “section 167(g)”.
Subsec. (d)(8). Pub. L. 87–834, § 13(c)(2)(B), substituted “section 167(g)” for “section 167(f)”.
Amendment by section 11002(d)(1)(R) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title.
Except as provided in paragraph (2), the amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2014.
Amendment by section 737(b)(3) of Pub. L. 111–312 applicable to property placed in service after Dec. 31, 2009, see section 737(c) of Pub. L. 111–312, set out as a note under section 168 of this title.
Except as provided in paragraph (2), the amendments made by this section [amending this section] shall apply to property placed in service after December 31, 2009, in taxable years beginning after such date.
Amendment by section 1702(h)(10), (19) of Pub. L. 104–188 effective, except as otherwise expressly provided, as if included in the provision of the Revenue Reconciliation Act of 1990, Pub. L. 101–508, title XI, to which such amendment relates, see section 1702(i) of Pub. L. 104–188, set out as a note under section 38 of this title.
Amendment by Pub. L. 101–508 applicable to property placed in service after Dec. 31, 1990, but not applicable to any transition property (as defined in section 49(e) of this title), any property with respect to which qualified progress expenditures were previously taken into account under section 46(d) of this title, and any property described in section 46(b)(2)(C) of this title, as such sections were in effect on Nov. 4, 1990, see section 11813(c) of Pub. L. 101–508, set out as a note under section 45K of this title.
Amendment by section 201(d)(3) of Pub. L. 99–514 applicable to property placed in service after Dec. 31, 1986, in taxable years ending after such date, with exceptions, see sections 203 and 204 of Pub. L. 99–514, set out as a note under section 168 of this title.
Amendment by section 201(d)(3) of Pub. L. 99–514 not applicable to any property placed in service before Jan. 1, 1994, if such property placed in service as part of specified rehabilitations, and not applicable to certain additional rehabilitations, see section 251(d)(2), (3) of Pub. L. 99–514, set out as a note under section 46 of this title.
Amendment by Pub. L. 98–369 applicable to taxable years ending after Dec. 31, 1983, see section 18(a) of Pub. L. 98–369, set out as a note under section 48 of this title.
Amendment by Pub. L. 97–34 applicable to property placed in service after Dec. 31, 1980, in taxable years ending after that date, see section 209(a) of Pub. L. 97–34, set out as an Effective Date note under section 168 of this title.
Amendment by section 213(a) of Pub. L. 94–455 applicable in the case of partnership taxable years beginning after Dec. 31, 1975, see section 213(f) of Pub. L. 94–455, set out as an Effective Date note under section 709 of this title.
Amendment by Pub. L. 91–172 applicable with respect to taxable years ending on or after Dec. 31, 1970, see section 401(h)(3) of Pub. L. 91–172, set out as a note under section 1561 of this title.

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