Expanded Section 179 Means Major Tax Breaks on Computer and Software Purchases

shutterstock_210145381The “Protecting Americans from Tax Hikes Act of 2015” (PATH Act) has been passed by both the House and Senate and will be signed into law – it expands the Section 179 deduction limit to $500,000.  Businesses can take advantage of these legal tax incentives to help lower their operating costs. The Section 179 Deduction is a tax incentive that is easy to use, and gives businesses an incentive to invest in themselves by adding capital equipment. This deduction will help businesses keep more capital, while also getting needed equipment, vehicles, and software.

As an example, if a business makes a qualifying $100,000 software purchase, under Section 179 the first year write-off is $100,000 with 50% bonus depreciation. Assuming a 35% tax rate, that means $35,000 in tax savings in 2015. It’s like getting $100,000 worth of software for just $65,000.


Here is a summary of Section 179 facts:

  • The total amount a business can write off this year has increased from $25,000 to $500,000.
  • This is retroactive to January 1, 2015.
  • To count the write off for this year, you need to act by Thursday 12/31/15!
  • These tax savings apply whether you pay cash or finance the sale.


Please consult your accountant or financial adviser for your specific savings, and contact Microwize Technology today to take advantage of Section 179 in 2015 for purchases of EHR software such as Medisoft, Greenway and Lytec.