The placed-in-service deadline
a backward timeline from December 31.
For Section 179 and bonus depreciation, the date that counts is when the machine is ready and available for its specific use, not when it was ordered, paid for or delivered. For a machine tool that usually means rigged into place, powered, leveled and able to run.
Not tax advice. Talk to your tax adviser or CPA about your situation. Information is current for the 2026 U.S. federal tax year (checked October 29, 2026); state rules differ.
Ready and available for a specific use.
IRS Publication 946 says you place property in service when it is ready and available for a specific use. For machinery, ask your adviser where your machine stands on these common situations:
- Ordered or paid for, still at the seller: not in service.
- On a truck or in a port on December 31: not in service.
- Delivered and set down, but not connected to power or leveled: usually not in service.
- Rigged into place, connected, leveled and able to run production: in service, even if the first production job starts in January.
A business with a fiscal tax year uses the last day of that tax year instead of December 31. The Section 179 limits apply to tax years beginning in 2026.
Typical lead times, step by step.
| Step | Typical planning range | What can slow it down |
|---|---|---|
| Run-off and acceptance | 1 to 5 working days | Missing tooling or programs, accuracy problems found at run-off |
| Installation, leveling and connection | 1 to 2 weeks | Electrician availability, air supply, chip and coolant setup |
| Rigging into place | 1 to 3 days on site, often booked 1 to 3 weeks ahead | Year-end demand for riggers, building access, permits |
| Freight | About 1 to 2 weeks within the U.S.; often 6 to 10 weeks or more from overseas | Crating, carrier capacity, customs, holidays |
| Power and foundation work | 2 to 6 weeks before delivery | Utility upgrades, transformers, concrete cure time |
| Purchase, inspection and financing | 1 to 3 weeks | Inspection access, credit approval, deposits |
Typical planning ranges for a single machine, not quotes. Confirm each with your seller, rigger, electrician and freight carrier, and add time for holidays.
Documents to keep with the invoice.
- The bill of sale or invoice, showing the date, price, model and serial number.
- Proof of payment or the signed financing agreement.
- The delivery receipt and the rigging company's completion record.
- The electrician's sign-off and the installation or run-off acceptance record, dated and signed.
- A dated photo or video of the machine under power, with the control screen visible.
Guides and providers for every stage.
- Freight, permits and rigging and the machine rigging hub, with riggers by state.
- Electrical power readiness and foundation and floor loading.
- Installation, commissioning and acceptance.
- Machinery financing and leasing providers, if the purchase depends on a credit approval.
The Section 179 guide.
Where these facts come from.
- IRS Publication 946, How To Depreciate Property
- IRS Rev. Proc. 2025-32 (2026 inflation adjustments, section 179 limits)
Published by Delta Arc, LLC · Editor: Michael Davis · Last reviewed October 29, 2026.
Not tax advice. Talk to your tax adviser or CPA about your situation. Information is current for the 2026 U.S. federal tax year (checked October 29, 2026); state rules differ.