Keep your cash
With $0 down and low initial payments*, your money stays available for payroll, parts, and the next job instead of sitting in a machine.
Equipment financing · Section 179
Buy the gear now.
Buy the gear now.
Deduct it this year.
Thanks to the Section 179 deduction and 100% bonus depreciation, many shops can write off the full price of qualifying equipment in the year it goes to work, even when it’s financed.
left to put equipment in service this year
- $2.56MSection 179 deduction limit for 2026
- 100%bonus depreciation on qualifying property
- $0 downfinancing with low initial payments*
- Dec 31deadline: equipment must be up and running
Run your numbers
See what the tax break is worth to you
Pick a piece of equipment, or type your own price. Then watch the difference between spreading the deduction out over years and taking it all at once.
You deduct this year$0
Estimated tax savings$0
Net cost after savings$0
Your first-year tax savings
That’s $0 more in tax savings in year one.
Illustration only, not tax advice. Assumes the equipment qualifies, is placed in service this year, and you have enough taxable business income to use the deduction. Normal depreciation shown uses the common 7-year schedule (14.29% in year one); your equipment class may differ. Savings are federal estimates.
Why finance it
The smartest way to buy big equipment
Financing and a tax deduction work together. You get the equipment working in your shop now, and you don’t drain your cash to do it.
Deduct the full price
The deduction generally follows the cost of the equipment, not how much you’ve paid so far. That means a big write-off in year one even though you’ve only made a few payments.
Fast answers
Fast credit decisions and flexible terms, with financing and leasing up to $2 million and application-only approval up to $500,000*, so you can say yes while the opportunity is open.
How it works
Four steps to a bigger write-off
- 1
Pick your equipment
Choose the gear your shop needs. Not sure what to get? Allen will help you build the right setup.
- 2
Apply for financing
One short application with Innovative Leasing. Fast credit decisions, and shipping and tax can be rolled in.
- 3
Get it delivered & set up
We handle delivery and can set up and train your team. Remember: it has to be installed and ready to use by December 31.
- 4
Claim it with your accountant
Your tax professional applies Section 179 and bonus depreciation on your return for the year it was placed in service.
The deadline that matters
Ordered isn’t enough. It has to be working by December 31.
To claim the deduction for this tax year, the equipment must be placed in service by December 31: delivered, installed, and ready to use in your business. Paying for it or signing the order is not the same thing.
Equipment takes time to ship and set up, so the shops that start early are the ones that make the cut. Don’t wait until the last week.
Days left this tax year
—
until December 31 to place equipment in service
What qualifies
Most of what a collision shop buys
Usually qualifies
- Welding equipment, spot welders and induction heaters
- Dent repair and glue-pulling systems
- Lifts, jacks and frame equipment
- Diagnostics, scan tools and ADAS calibration systems
- Paint and refinish equipment, compressors and shop air
- A/C service machines and other shop equipment
- Off-the-shelf software
- Used equipment, if it’s new to you
Usually doesn’t, or needs care
- The building and the land
- Parts and supplies you resell (that’s inventory)
- Equipment bought from a related party
- Anything used mostly for personal purposes
- Vehicles (special limits apply)
- Equipment used mostly outside the U.S.
- Ongoing subscriptions, which are usually regular expenses
The details
Good to know before you buy
Section 179 vs. bonus depreciation
Section 179 lets you deduct qualifying equipment up to a yearly limit ($2,560,000 for 2026, which starts to phase out once you place more than $4,090,000 of equipment in service). Bonus depreciation, now 100% for qualifying property, covers the rest and has no such cap. Section 179 can’t push your business into a tax loss; bonus depreciation can. Your accountant decides the best mix for your return.
Does financed equipment qualify?
Generally yes. The deduction follows the cost of the equipment placed in service, not the amount of your down payment, so financed purchases are typically treated like cash purchases. For leases, the lease terms matter: a finance (capital) lease that works like a purchase can qualify, while a true operating lease is usually deducted as rent. Ask your tax professional to review the paperwork.
What if I use the equipment partly for personal use?
The equipment needs to be used for business. If business use drops below 50%, part of the deduction may have to be paid back (“recaptured”). The same can happen if you sell the equipment early.
Is a bigger deduction always better?
Not always. Taking the whole deduction in year one means less depreciation in later years. If you expect to be in a much higher tax bracket later, a smaller election may save more over time. That’s a conversation for your accountant.
What about trade-ins?
Trading in old equipment is generally treated as selling it and buying new, and selling fully depreciated equipment can create taxable income. Ask your accountant how a trade-in would affect your numbers.
Are these figures guaranteed?
No. Limits and rules can change, states don’t all follow the federal rules, and everyone’s tax situation is different. The 2026 figures on this page reflect published guidance following the 2025 tax law (P.L. 119-21). Please talk to a qualified tax professional before you buy.
Ready to put your tax break to work?
Apply in minutes. Fast credit decisions, flexible terms, and up to 100% financing that can include shipping and tax.*
*Financing offered through Innovative Capital Corp. (Innovative Leasing), a third-party lender, subject to credit approval. Terms and availability vary. Ask your tax advisor about potential tax savings. This page is general information, not tax, legal, or accounting advice. Savings shown are estimates for illustration. Product names and logos are trademarks of their owners.