Does Section 179 Apply to Purchasing DIGITAL DENTAL TECHNOLOGIES? What Dentists Need to Know

So you're thinking about making the investment in advanced dental equipment—such as CBCT, 3D printers, intraoral scanners, milling machines, photogrammetry units, wire bending robots, and other cutting-edge tools? Making the investment in new technologies can be a stepping stone for your practice, but it also can be a significant financial commitment for any dental practice.

Fortunately, Section 179 of the IRS tax code offers an opportunity for practices to reduce the cost of these investments through tax deductions. So, many doctors considering making the jump to new technology plan around the end of year tax incentives to more immediately recognize the cash savings.. trimming down the initial investment, thus realizing ROI even faster!

Here’s how Section 179 works and how it applies to purchasing dental equipment.

How Section 179 Works for Dental Practices

If you're looking to expand your practice’s capabilities with new equipment like 3D printers, intraoral scanners, or milling machines, Section 179 can help make these purchases more affordable by reducing your taxable income. By claiming the full purchase price as a tax deduction, you immediately lower your tax liability, which can make investing in new technology financially feasible and more accessible.

For instance, if a dental practice purchases a $50,000 intraoral scanner, Section 179 allows the full $50,000 to be deducted in the year of purchase. The amount deducted reduces the practice's taxable income, ultimately lowering the taxes owed and freeing up more cash flow.

Qualifying Equipment for Section 179

To qualify for the deduction, all you need to do is purchase or finance the equipment and/or software and put it to use (i.e. have it installed) in this tax year.

In 2024, the deduction limit for write-offs increased to $1,220,000, so you can easily deduct the full amount of any dental imaging equipment or software your practice may need. The Bonus Depreciation is 60%.

In addition, not only can you apply the Section 179 tax credit, but you can also begin adding additional procedures and production to your schedule for an even more savings and an accelerated return on investment. 

Key Requirements and Limits for Section 179

While Section 179 offers significant tax benefits, there are requirements and limits to be aware of:

1. Equipment Must Be Purchased and Used in the Same Year: To qualify for the Section 179 deduction, the equipment must be purchased and put into use by December 31 of the tax year.

2. Maximum Deduction Limit: The maximum deduction under Section 179 for 2024 is $1,220,000. This means that you can deduct up to this amount in equipment purchases, providing substantial tax savings for large investments.

3. Business-Use Requirement: The equipment must be used for business purposes more than 50% of the time. Equipment that is not primarily used for business (e.g., mixed personal and professional use) may not qualify.

4. Financing Eligibility: Section 179 also applies to equipment that is financed. This means practices can take the deduction on the full purchase price, even if the equipment is not paid in full by year-end.

How Section 179 Differs from Bonus Depreciation

In addition to Section 179, bonus depreciation is another method that allows businesses to deduct a portion of their equipment costs upfront. However, there are key differences between the two:

• Section 179 is elective: Businesses choose which items to deduct under Section 179, whereas bonus depreciation applies automatically unless specifically opted out.
• Bonus depreciation is available for both new and used equipment, while Section 179 is primarily geared toward new equipment purchases.
• Percentage Deduction: In recent years, bonus depreciation has allowed for a 100% deduction, but this percentage is gradually decreasing.

In most cases, dental practices can use both Section 179 and bonus depreciation together to maximize deductions. For example, if a practice purchases equipment exceeding the Section 179 limit, it can claim additional deductions under bonus depreciation.

Real-Life Example of Section 179 in Action

Consider a dental practice that plans to expand its digital capabilities by investing in a 3D printer ($50,000), an intraoral scanner ($40,000), and a milling machine ($70,000). The total investment is $160,000. Under Section 179, the practice can deduct the entire $160,000 in the year of purchase, provided they meet all requirements.

If the practice falls in the 30% tax bracket, the Section 179 deduction would provide a tax savings of $48,000 ($160,000 x 0.30). This immediate tax benefit reduces the practice’s overall investment cost, making advanced dental technology more financially accessible.

CONSIDERING Digital Dentistry TECHNOLOGIES FOR 2025?

Voxel Dental is committed to driving the future of digital dentistry by offering cutting-edge technology solutions that streamline workflows, enhance patient care, and improve clinical outcomes. Whether you are just beginning your digital journey or are looking to upgrade your practice’s current capabilities, Voxel Dental provides the tools, training, and support to ensure a smooth transition.

With digital dentistry becoming the new standard, investing in digital tools and workflows is no longer optional—it's essential. Practices that embrace these technologies are better positioned to provide fast, accurate, and high-quality care that meets the needs of modern patients.

READY TO GET STARTED? REACH OUT!

We have a team of dental technology experts ready to help you find the right equipment for your practice, with specialists trained on the latest digital workflows for orthodontics, full arch and restorative, milling and much more!

We’ve worked with thousands of dentists across the US. We know what it takes to get up and running quickly, especially with new technology. 

That’s why we back all of our products with a comprehensive warranty, product support, installation, and perhaps, most importantly, online and on-site training to help get you and your staff started with your new technology as quickly as possible.

Ready to begin? Give us a call at (281) 789-7270 or fill out an online inquiry form below. We look forward to earning your business.