5-year property · 200% declining balance, half-year
Includes: Excavators, bulldozers, backhoes, loaders, cranes, compressors, scaffolding and tools a construction business uses. Watch: Assets listed in Table B-1 keep their own class whatever the business: pickups and light trucks are 5-year listed property, heavy trucks 5-year with a 6-year ADS period.
| Line 12 · Section 179 expense | $0.00 |
|---|---|
| Line 14 · Special (bonus) depreciation, 100% | $140,000.00 |
| Line 19 · MACRS, 5-year property | $0.00 |
Basis = cost × business use · bonus = (basis − §179) × bonus rate · each year = (basis − §179 − bonus) × table rate
IRS Pub 946 tables · §179 and bonus per the One Big Beautiful Bill Act · car limits per §280F and the IRS yearly revenue procedure.
Placed in service March 2026, 100% business use, no section 179 or bonus.
| Tax year | Depreciation |
|---|---|
| 2026 | $28,000 |
| 2027 | $44,800 |
| 2028 | $26,880 |
| 2029 | $16,128 |
| 2030 | $16,128 |
| 2031 | $8,064 |
Source: Pub 946 Table B-2, asset class 15.0 Construction: assets used by general building, special trade, heavy and marine construction contractors, builders and developers (class life 6, GDS 5, ADS 6). IRS Publication 946.
insytesBI. (2025). Construction equipment depreciation life. Data: IRS Publication 946, 2025 edition. https://www.insytesbi.com/calculators/depreciation/construction-equipment/<a href="https://www.insytesbi.com/calculators/depreciation/construction-equipment/">Construction equipment depreciation life</a>Construction equipment are 5-year property under MACRS (the General Depreciation System), depreciated with 200% declining balance, half-year. Under the Alternative Depreciation System the period is 6 years. Source: Pub 946 Table B-2, asset class 15.0 Construction: assets used by general building, special trade, heavy and marine construction contractors, builders and developers (class life 6, GDS 5, ADS 6).
Section 179 lets you deduct up to $2,560,000 in 2026 (reduced above $4,090,000 of purchases), as long as the business has the income. Bonus depreciation is 100% for property acquired after January 19, 2025, under the One Big Beautiful Bill Act.
With no section 179 or bonus, placed in service in March 2026: $28,000 in 2026, $44,800 in 2027, $26,880 in 2028, $16,128 in 2029, and so on. The calculator above works it out for your own cost, date and business use.
Assets listed in Table B-1 keep their own class whatever the business: pickups and light trucks are 5-year listed property, heavy trucks 5-year with a 6-year ADS period.