Section 179 of the Internal Revenue Code lets a Jacksonville physical therapy clinic immediately expense the cost of qualifying equipment in the year of purchase, instead of depreciating it over 5–7 years. For a PT clinic adding $40,000 of new therapy equipment in 2026, that's the difference between deducting $40,000 in year 1 versus $5,700 in year 1 (with the rest spread over the next several years). The cash-flow impact is significant. This page covers what qualifies, what the limits are, and how Section 179 interacts with bonus depreciation.
For a typical Jacksonville PT clinic, the practical issue is the taxable income limit, not the dollar cap. A clinic with $180K in net income and $100K in equipment purchases can take up to $180K in Section 179 expensing — meaning the full $100K is immediately deductible.
Tangible personal property used in the active trade or business. For a PT clinic in Jacksonville:
Note: leasehold improvements to the clinic interior generally don't qualify under § 179 directly, but qualified improvement property (QIP) under separate rules can be expensed via 100% bonus depreciation through 2022 (now phasing down — 40% in 2026).
Both let you accelerate equipment depreciation, but with different rules:
| Section 179 | Bonus Depreciation | |
|---|---|---|
| Election required? | Yes (per asset) | Default (must opt out) |
| 2026 percentage | 100% up to limit | 40% (phasing down) |
| Limited by taxable income? | Yes | No (can create NOL) |
| State conformity | Most states conform | Many states decouple |
| Used property eligible? | Yes | Yes (post-TCJA) |
Best practice for a PT clinic with a profitable year: take Section 179 first up to the taxable income limit, then bonus depreciation on the remainder. Florida conforms to federal Section 179 (no state-level addback), so the federal deduction stands clean.
A 4-PT clinic on the Southside expands and purchases:
Clinic 2026 taxable income (before deductions): $165,000. Full $47,500 qualifies for Section 179 expensing. Tax savings (assuming 32% combined federal effective rate at the owner's bracket): $15,200 in year 1. Without Section 179, the same equipment would deduct ~$6,800 in year 1 under straight-line depreciation, saving only $2,176. Net Section 179 advantage: $13,000+ in year-1 tax savings.
To claim Section 179 in 2026, the equipment must be placed in service in 2026 — not just ordered or paid for. "Placed in service" means ready and available for its intended use. Buying and paying for an ultrasound unit on December 28 that doesn't arrive and get set up until January 5 of the next year means the deduction belongs in the next year, not 2026.
For year-end purchases, document delivery and installation dates carefully. Save the packing slip, installation invoice, and any setup confirmation.
Approximately $1,250,000 in total Section 179 expensing per year, with a phase-out beginning at $3.13M of total qualifying property placed in service. Most Jacksonville PT clinics never approach these limits — the practical constraint is the clinic's taxable income, since Section 179 cannot create a loss.
Yes, but only for capital leases (lease-to-own arrangements where the clinic gains ownership). Operating leases (true rentals where the equipment returns to the lessor) don't qualify because the clinic doesn't own the asset. Many therapy equipment financing programs are capital leases.
Yes for qualifying vehicles used >50% for business. Heavy SUVs over 6,000 GVW have an enhanced limit (~$30K). Passenger vehicles have a much lower § 280F limit (~$12,400 for first-year combined § 179 + bonus depreciation). Used 100% for business is required for full deduction.
Yes. Florida conforms to federal Section 179 with no state-level addback. C-corp PT clinics paying Florida corporate income tax (5.5%) get the deduction at the state level too. Sole proprietors and S-corps face no Florida personal income tax regardless.
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