Equipment Financing Tax Savings | Byline Bank

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We can help reduce your tax liability by financing 100% of your equipment purchases—allowing you to maximize both your purchasing power and tax deduction.

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you may be able to deduct the full purchase price from your gross income all in the first year.

The “Protecting Americans from Tax Hikes Act of 2015” (PATH Act) expanded the Section 179 deduction limit to $500,000. It also reinstated the 50% Bonus Depreciation through 2019. Businesses of all sizes will be able to depreciate 50 percent of the cost of equipment acquired and put in service during 2016 and 2017—even after the Section 179 deduction is taken and all in the first year!

Example of PATH Act Benefits

Equipment Purchases: $750,000
First Year Deductions: $650,000
  • Section 179 $500,000
  • 50% Bonus Depreciation
  • Normal 1st Year Depreciation
Cash Savings: $227,500
  • $650,000 x 35%* (*assumed tax rate)
Net After Tax Cost of the Equipment: $522,500
All businesses should consult with their tax advisor to determine if they qualify.

Copyright 2017 Byline Financial Group, a wholly-owned subsidiary of Byline Bank, Member FDIC