This Section 179 deduction limit amount changes from year to year to adjust for inflation. For 2023, the maximum Section 179 deduction is $1,160,000, an $80,000 increase from 2022.
For 2023, the Section 179 spending cap for business purchases made from January 1 through December 31 is $2,890,000. If your business spends $2,890,000 or less on qualifying equipment in 2023, you are eligible for the full Section 179 deduction amount. The deduction limit is then reduced for every dollar your business spends on qualifying equipment beyond the $2,890,000 cap.