Where Can Section 179 Be Used?

The Section 179 deduction can generally be used for eligible equipment that will be used in the United States. There is also a provision that allows for an increased deduction to businesses located in specially designated areas. These areas include:

Enterprise Zone and Renewal Community Businesses

Businesses that put equipment into service in these zones can double the Section 179 deduction up to a cap of $35,000. A summary of these zones can be found here , or use the enterprise zone and renewal community locator tool to see if your business is located in one of these areas.

Disaster Assistance Property

Any eligible property placed into service in a federally declared disaster area can double the deduction up to a maximum of $100,000. In addition, the cap on equipment purchased increases by $600,000 or the cost of the equipment purchased, which ever is smaller.

Other Areas

There are other defined zones in the tax code but they are generally for equipment that is purchased prior to 2009. More details on these areas can be found here.