Now is the perfect time to upgrade your facility with FS-Elliott compressors and control systems, thanks to powerful tax incentives under Section 179 and Section 168(k) of the U.S. Tax Code.
For more information and detailed guidance, visit the official IRS Publication 946 and IRS Bonus Depreciation FAQ.
These tax provisions allow businesses to recover the cost of capital investments faster, meaning you keep more cash in your business while investing in performance, reliability, and efficiency.
What’s the Opportunity?
Under current law, eligible FS-Elliott equipment may qualify for up to a 100% first-year deduction, allowing you to write off the full purchase price in the same tax year.
This immediate expense option can help you:
- Reduce taxable income and lower overall tax liability
- Accelerate ROI on your compressor and control system investments
- Improve cash flow by realizing tax benefits in the same year as the purchase
- Plan smarter by aligning project timelines with fiscal goals
Both Section 179 (deduction election) and Section 168(k) (bonus depreciation) can work together – Section 179 applies first, and Section 168(k) can often cover the remaining cost basis.
Example Savings
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Example
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Amount
|
|
Investment in qualifying FS-Elliott equipment
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$500,000
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Potential tax savings (at 32%)
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$160,000
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Net effective cost
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$340,000
|
*Example for illustrative purposes only. Actual tax savings depend on your company’s tax situation.
Even smaller upgrades, such as installing a new control system, retrofitting existing compressors, or adding smart technology can qualify for accelerated depreciation, giving you flexibility in how you modernize your operation.
Qualifying Equipment Includes
- PAP Plus and Polaris centrifugal air and gas compressors
- Regulus control solutions
- Auxiliary components and system upgrades
- Equipment purchases under Section 179 phase-out limit ($2.5 million for 2025, indexed annually)
To qualify, equipment must be purchased or financed and placed into service, installed, operational, and ready for use by December 31 of the applicable tax year.
How to Claim Your Benefit
- Purchase or finance FS-Elliott equipment before year-end
- Ensure it’s placed into service by December 31 of the applicable tax year
- Work with your tax advisor to determine eligibility for Section 179 and/or 168(k)
- File IRS Form 4562 to elect your Section 179 deduction and claim any applicable bonus depreciation under 168(k)
- Consider annually if you plan additional upgrades
Looking Ahead
These accelerated depreciation benefits are currently available through 2026, giving you flexibility to plan upgrades strategically over multiple fiscal years. By acting early, you can lock in these incentives and position your facility for stronger operational performance and financial efficiency.
Let FS-Elliott help you make the most of it with reliable equipment, expert guidance, and coordinated support from purchase to commissioning.
Important Note
This information is provided for educational purposes only and should not be considered legal, tax, or financial advice. Tax laws and deduction limits under Section 179 and 168(k) are subject to change based on future legislation or IRS updates, so eligibility and benefits may vary by year.
Always consult your tax or financial advisor to confirm eligibility, determine deduction limits, and ensure compliance with IRS requirements.
These tax incentives apply only to businesses subject to U.S. federal tax law; international customers are not eligible for Section 179 or Section 168(k) benefits.
Are you qualified and ready to take advantage of Section 179 and 168(k) tax incentives to improve your plant’s energy efficiency and reliability?
Contact FS-Elliott to get started.