Leading MTSP Encourages Businesses to Explore $2.56 Million Deduction While Modernizing Critical Technology Before End-of-Year
Tele-Plus Corporation, a leading managed technology services provider (MTSP), is encouraging business owners to speak with their tax professionals about the increased 2026 Section 179 deduction, which may provide businesses with a valuable opportunity to invest in technology while reducing taxable income. For tax year 2026, eligible businesses may expense up to $2,560,000 in qualifying property, with the deduction beginning to phase out once total qualifying property placed into service exceeds $4,090,000. For companies already considering technology upgrades, qualifying investments may include items such as servers, computers, network equipment, communications technology, certain cybersecurity hardware, and eligible off-the-shelf business software, subject to Section 179 requirements.
“Technology upgrades eventually become unavoidable,” said Shannon Yates, President at Tele-Plus Corporation. “Servers age, security requirements change, and employees need better systems. Section 179 gives companies another reason to have those conversations proactively instead of waiting for aging technology to force their hand. When done strategically, tax planning can reduce total cost of ownership. Whereas waiting for obsolescence can leave business owners in a pinch with large capital outlays.”
Rather than viewing the deduction simply as an opportunity to purchase equipment, Tele-Plus Corporation encourages businesses to use the moment to evaluate where technology investments could improve productivity, cybersecurity, reliability, and long-term profitability.
For example, a company already planning to replace aging servers, strengthen network security, modernize employee workstations, or upgrade communications infrastructure may be able to accelerate those investments while potentially realizing meaningful tax advantages.
“The best technology investment isn’t necessarily the newest or most expensive solution,” Yates added. “It’s the one that solves an actual business problem. If a company already needs to make an investment that will reduce downtime, protect its data, or make its employees more productive, Section 179 can potentially make the economics of that decision even more attractive.”
Timing is particularly important. In general, qualifying property must be purchased or financed and placed into service during the applicable tax year to qualify for that year’s Section 179 deduction. Businesses waiting until the final days of December may discover there is insufficient time to acquire, configure, and deploy new technology.
Tele-Plus Corporation therefore recommends that organizations begin discussions now with their tax professionals well before year-end.
“Too many business owners wait until December to start asking what they should buy,” Yates said. “A much smarter approach is to talk with your CPA and your technology partner now, identify investments the business genuinely needs, and build a plan around them.”
Tele-Plus Corporation emphasizes that it does not provide tax, accounting, or legal advice. Eligibility for Section 179 varies by business and purchase, and companies should consult a qualified CPA or tax professional before making decisions based on potential tax benefits.