Section 179 Limits for Enterprise Zone Property
Since 1993, the amount of allowable Section 179 expense deduction has been increased for qualifying property owned by an "enterprise zone business" (as defined in IRS Code Sec. 137B).
Dollar Limit
The table below shows the standard Section 179 limits, as well as the increased limits for enterprise zone property:
|
Year |
Sec 179 Base Limit |
Increased Limit for Enterprise Zones |
|
1993 - 1996 |
$17,500 |
+ $20,000 = $37,500 |
|
1997 |
$18,000 |
+ $20,000 = $38,000 |
|
1998 |
$18,500 |
+ $20,000 = $38,500 |
|
1999 |
$19,000 |
+ $20,000 = $39,000 |
|
2000 |
$20,000 |
+ $20,000 = $40,000 |
|
2001 |
$24,000 |
+ $20,000 = $44,000 |
|
2002 |
$24,000 |
+ $35,000 = $59,000 |
|
2003 |
$100,000 |
+ $35,000 = $135,000 |
|
2004 |
$102,000 |
+ $35,000 = $137,000 |
|
2005 |
$105,000 |
+ $35,000 = $140,000 |
|
2006 |
$108,000 |
+ $35,000 = $143,000 |
|
2007 |
$125,000 |
+ $35,000 = $160,000 |
|
2008 |
$250,000 |
+ $35,000 = $285,000 |
|
2009 |
$250,000 |
+ $35,000 = $285,000 |
|
2010-2016 |
$500,000 |
+ $35,000 = $535,000 |
|
2017 |
$510,000 |
+ $35,000 = $545,000 |
|
2018 |
$1,000,000 |
+ $35,000 = $1,035,000 |
|
2019 |
$1,020,000 |
+ $35,000 = $1,055,000 |
|
2020 |
$1,040,000 |
+ $35,000 = $1,075,000 |
|
2021 |
$1,050,000 |
N/A |
|
2022 |
$1,080,000 |
N/A |
|
2023 |
$1,160,000 |
N/A |
|
2024 |
$1,220,000 |
N/A |
|
2025* |
$2,500,000 |
N/A |
|
2026 and thereafter |
Indexed for inflation |
N/A |
* The One Big Beautiful Act (OBBBA) of 2025 retroactively increased the Section 179 limit to $2,500,000 from $1,250,000, effective January 1, 2025.
Investment Limit
For property NOT qualifying as enterprise zone property, the allowable amount deducted under Section 179 is reduced by one dollar for every dollar of investment over the threshold amount for property qualifying for Section 179 and placed in service in the same taxable year.
For property that DOES qualify as enterprise zone property, you consider only 50% of the cost of the property placed in service in the tax year.
