Leveraging Section 179 & Section 168(k) Tax Benefits
Oktober 14, 2025
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.
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?
- 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
| Example | Amount |
|---|---|
| Investment in qualifying FS-Elliott equipment | $500,000 |
| Potential tax savings (at 32%) | $160,000 |
| Net effective cost | $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
Important Note
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.
For more information and detailed guidance, visit the official IRS Publication 946 and IRS Bonus Depreciation FAQ.
Maximize Your Compressor Investment with Tax Incentives
Connect with our team to explore how Section 179 and Section 168(k) tax benefits may help reduce the upfront cost of investing in new, energy-efficient centrifugal compressor equipment.
YOU MAY ALSO LIKE
Continue Reading
How Compressed Air Impacts Product Quality and Efficiency in Automotive Manufacturing
Automotive manufacturing relies on compressed air at virtually every stage of production. From robotic assembly and paint operations to material handling and battery manufacturing, compressed air powers critical processes that keep production moving.
Lifecycle Optimization for Centrifugal Air Compressors — Episode 5: Why Driver Train Health Matters as Much as the Compressor Itself
In Episode 5, explore why motors, gearboxes, couplings, and auxiliary systems deserve close attention, and how the health of the driver train influences compressor reliability.
Lifecycle Optimization for Centrifugal Air Compressors — Episode 4: Advances in Instrumentation & Monitoring
In Episode 4, explore how advances in compressor monitoring, AI, and engineering support condition-based maintenance and modernize aging equipment.
Lifecycle Optimization for Centrifugal Air Compressors — Episode 3: What Gets Missed in Troubleshooting
In Episode 3, learn how overlooked filtration, cooling, and lubrication issues can escalate into compressor failures, and why effective troubleshooting starts with root causes.