If new cattle-handling equipment is already on your list, year-end may be the right time to put it to work.
For 2026, Section 179 continues to give qualifying businesses an opportunity to deduct the cost of eligible equipment purchased and placed in service during the tax year. Combined with 100% bonus depreciation, it can make investing in the equipment your operation already needs even more worthwhile. The key? Plan before the calendar runs out.
What’s New for Section 179 in 2026?
For tax years beginning in 2026, the Section 179 deduction limit increased to $2.56 million, with the deduction beginning to phase out when qualifying equipment purchases exceed $4.09 million.
In addition, 100% bonus depreciation remains available for qualifying property, giving agricultural businesses another potential way to deduct eligible equipment costs.
That doesn’t mean every purchase automatically qualifies or that every operation should use the same depreciation strategy. Your tax professional can help determine which approach makes the most sense for your business.
Section 179 vs. Bonus Depreciation: What’s the Difference?
Both can potentially allow businesses to deduct qualifying equipment costs more quickly, but they work differently.
Section 179 allows qualifying businesses to elect to expense eligible property, up to the annual deduction limit. The deduction is subject to purchase thresholds, taxable business income and other IRS requirements.
Bonus depreciation provides another way to accelerate depreciation on qualifying property. Current federal law provides a 100% additional first-year depreciation deduction for certain eligible property acquired after January 19, 2025.
Depending on your operation, your tax professional may recommend Section 179, bonus depreciation or a combination of the two. The important part is knowing the opportunity exists before you make your year-end equipment decisions.
What Livestock Equipment May Qualify?
Qualifying agricultural equipment may include machinery and equipment used in your business. Depending on your individual circumstances, that could include investments in cattle-handling equipment such as:
- Portable and stationary cattle-working systems
- Alleys and loadout equipment
- Wheel corrals and portable systems
- Calf-handling equipment
- Maternity equipment
- Gates, panels and other livestock-handling equipment
For MJE Livestock Equipment customers, that could mean equipment like The Conquistador, CattleLine™, the DSX Alley™, Portable Load Chutes, Hydraulic Calf Tables, Maternity Pens and more.
Eligibility depends on how the equipment is purchased and used, so always confirm your specific purchase with your tax professional.
Don’t Overlook “Placed in Service”
This is where year-end planning matters. To potentially qualify for a 2026 Section 179 deduction, eligible equipment generally must be placed in service during the 2026 tax year.
In other words, don’t wait until the final days of December to start thinking about the equipment your operation needs. Manufacturing schedules, dealer inventory, transportation, installation and setup can all take time. If you’re considering an equipment purchase before year-end, starting the conversation early gives you more options and a better chance of having your equipment ready when you need it.
Three Reasons to Make the Move Before Year-End
1. Put available tax incentives to work.
If you’re already planning a qualifying equipment purchase, Section 179 or bonus depreciation may help reduce the after-tax cost of that investment.
2. Solve an operational problem now.
Tax savings shouldn’t be the only reason to buy equipment. Better cattle flow, safer working conditions, improved efficiency and equipment that fits your operation can deliver value long after tax season is over.
3. Invest in equipment built for the long haul.
A tax deduction lasts one year. The right equipment should keep earning its place on your operation for years to come. That’s why MJE Livestock Equipment builds cattle-handling systems around heavy-duty construction, practical cattle-first design and the flexibility to work the way your operation works.
Planning a Year-End Equipment Purchase? Start Now.
If you’ve been putting off an equipment upgrade, this is a good time to have the conversation.
Start by talking with your tax professional about your 2026 tax situation and whether Section 179 or bonus depreciation may apply. Then take a hard look at the equipment your operation needs, what problems you want to solve and what needs to be in service before year-end.
Your MJE Livestock Equipment dealer can help you determine the right equipment and configuration for your operation and help you understand current availability and lead times.
Don’t buy equipment just for the deduction. Buy the equipment your operation needs, and don’t leave a potential deduction on the table.
This article is provided for general informational purposes only and should not be considered tax, accounting or legal advice. Tax laws and individual circumstances vary. Consult with a qualified tax professional to determine whether equipment purchases qualify for Section 179, bonus depreciation or other tax treatment and how these provisions apply to your operation.