Every December, owners make the same call: spend now or wait until January. For IT equipment you already know you need, waiting can cost you.
Section 179 of the tax code lets a business deduct the full cost of qualifying equipment, including computers, servers, network gear and software you buy outright, in the year it goes into service. For 2026, the limit is $2.56 million, far more than most small businesses spend.
Check the details with your accountant. Our job is to make sure the equipment is actually installed and working before the deadline.
The deadline is installed, not ordered
To count for 2026, equipment has to be placed in service by December 31. That means set up and in use, not sitting in a box in the storeroom.
That matters in December. Shipping slows down, your staff takes time off, and every IT company in SE Wisconsin is booked solid the last 2 weeks of the year. A firewall ordered December 20 may not be running by December 31.
If you want the deduction, decide in November and schedule installation for early December.
What's worth buying before year-end
Computers still on Windows 10
Windows 10 security updates have ended. Any PC that can't run Windows 11 is a security gap and an insurance question. Replace it now and deduct it this year.
Firewall and network gear
Firewalls past end of support stop getting security fixes. Switches and Wi-Fi access points 7+ years old are usually why your network is slow.
Servers and backup hardware
A server over 5 years old is living on borrowed time. Backup hardware that keeps copies an attacker can't delete also helps at cyber insurance renewal.
Phones and cameras
VoIP desk phones, conference room gear, security cameras and access control hardware can all qualify when you buy them.
Year-end IT checklist
| When | What to do |
|---|---|
| Mid-November | List equipment over 5 years old, any PC still on Windows 10 and anything past end of support. |
| Late November | Get quotes and confirm with your accountant how much you want to deduct this year. |
| Early December | Order. Schedule installation for the first 2 weeks of December, before holiday shipping delays. |
| By December 31 | Equipment installed, tested and in use. Keep the invoice and the install date. |
Don't buy just to buy
A deduction lowers your tax bill. It doesn't make an unnecessary purchase free. The right list is equipment you'd replace in the next 12 months anyway, moved up a few weeks.
That's where a plan helps. Technology is an investment, not a cost, but only when you buy the right thing at the right time.
How IDN helps
IDN reviews what you have, flags what's past its useful life or out of support, and gives you a prioritized replacement list with quotes. Then we install it, test it and document it, so the date your accountant needs is on paper.
We're in Racine, and we've done this for SE Wisconsin businesses since 2004. If you call us in December, you still get a response in 10 minutes.
- CLIENTS SERVED
- 1,000+
- RESPONSE SLA
- 10-MIN
- YEARS IN SE WISCONSIN
- 20+
Year-end IT purchase questions
- Does IT equipment qualify for Section 179?
- Generally, yes. Computers, servers, network equipment, phones and off-the-shelf software bought for business use usually qualify. Your accountant can confirm what fits your situation.
- What is the Section 179 limit for 2026?
- $2.56 million, with the deduction starting to phase out once total qualifying purchases pass about $4.09 million. Most small businesses are far below both numbers.
- If I order equipment in December, can I deduct it this year?
- Only if it's placed in service, meaning installed and in use, by December 31. Ordering or paying alone doesn't count.
- Is leasing equipment different?
- It depends on the type of lease. Some leases treat you as the owner and can qualify. Ask your accountant before you sign.
Know what to replace before December 31
IDN's free IT assessment shows which equipment is past end of support, which PCs can't run Windows 11 and what to replace first. You get a prioritized list in time to buy before year-end.