Take Advantage of the 2026 Section 179 Deduction for Restaurant Equipment

If you're a restaurant owner or foodservice operator, Section 179 lets you deduct the full cost of qualifying equipment placed in service in 2026. That includes new or used equipment.

What Is Section 179?

Section 179 of the IRS tax code encourages businesses to invest in themselves. Normally, equipment is depreciated over several years. With Section 179, you can expense the cost right away, which lowers your taxable income for the same year you put the equipment to work.

That makes it a strong tool for restaurants, catering operations, food trucks, cafés, bars, and commercial kitchens. You can upgrade and grow now instead of waiting years for the tax benefit.

What's the 2026 Limit?

For the 2026 tax year, you can deduct up to $2,560,000 in qualifying equipment purchases.

• The deduction begins to phase out once total qualifying purchases for the year exceed $4,090,000.
• Section 179 is now a permanent part of the tax code, with limits adjusted for inflation each year.
• Your deduction generally can't exceed your business's taxable income for the year. Unused amounts may carry forward.

Which Equipment Qualifies?

Eligible items include, but aren't limited to:

• Walk-in coolers and freezers
• Reach-in refrigeration and prep tables
• Commercial ice machines
• Exhaust hood and ventilation systems
• Commercial ranges, ovens, fryers, and griddles
• Dishwashers and warewashing equipment
• Slicers, mixers, and food prep equipment
• Restaurant furniture and bar equipment

The equipment must be used for business more than 50% of the time and placed in service by December 31, 2026.

Financed Equipment Counts Too

You don't have to pay cash to qualify. Equipment purchased through financing can still qualify for the full deduction in the year it's placed in service. In some cases, your first-year tax savings can exceed what you pay in financing during that year.

How Do You Claim the Deduction?

1. Purchase and place the equipment in service by December 31, 2026.
2. Elect the deduction on IRS Form 4562 (Part I). It is not automatic.
3. Confirm more than 50% business use.
4. Keep documentation, such as invoices, delivery and installation dates, and business-use records.

Why It Matters for Restaurant Owners

• Keep more cash in the business. Writing off the cost now frees up capital to reinvest.
• Upgrade sooner. There's no reason to delay replacing that aging oven or failing reach-in.
• Support growth. Better equipment means more volume, more reliability, and lower operating costs.

Next Steps: How ACityDiscount Helps

• Talk to our team at 404-752-6715 for a custom quote, a turnkey build-out, or help identifying qualifying equipment. Hablamos Español.
• Visit our 60,000 sq ft showroom in Norcross, GA, and see the equipment in person.
• Shop new and used equipment. Both can qualify under Section 179.
• Ask about financing to make your purchase before the deadline.
• Consult your tax advisor. Every business's tax situation is different.

The deadline is December 31, 2026. Equipment also needs time for delivery and installation, so plan your purchase early to make sure it's in service before year-end.

Disclaimer: This content is for informational purposes only and should not be considered tax advice. Always consult your professional tax advisor or accountant before claiming deductions or making capital investments.