Heavy Construction Equipment Depreciation Calculator
IRS MACRS depreciation calculator for heavy construction equipment including excavators, bulldozers, and cranes. 5-year recovery period.
Year 1 Deduction
$20,000
Recovery Period
5 years
Total Depreciation
$100,000
Method
DB/SL
Year
Rate
Deduction
Cumulative
1
20.00%
$20,000
$20,000
2
32.00%
$32,000
$52,000
3
19.20%
$19,200
$71,200
4
11.52%
$11,520
$82,720
5
11.52%
$11,520
$94,240
6
5.76%
$5,760
$100,000
IRS Classification
IRS Asset Class: GDS 5-year (MACRS Asset Class 15.0)
Section 179: EligibleBonus Depreciation: Eligible
Key Tax Facts
Construction equipment classified as 5-year MACRS under Asset Class 15.0
Section 179 expensing commonly used by contractors for immediate deduction
Bonus depreciation available for new and used equipment
Equipment must be used more than 50% for business to claim Section 179
What This Covers
Excavators
Bulldozers and dozers
Cranes
Backhoes
Skid steers
Forklifts
Aerial lifts
Concrete mixers
Common Questions
Construction equipment is 5-year MACRS property (Asset Class 15.0). Under the half-year convention: Year 1: 20%, Year 2: 32%, Year 3: 19.2%, Year 4: 11.52%, Year 5: 11.52%, Year 6: 5.76%. Most contractors use Section 179 or bonus depreciation for a full first-year deduction.
Yes. An excavator qualifies for Section 179 expensing (up to $1,160,000 for 2023) and bonus depreciation. Many contractors deduct the full purchase price in the year the equipment is placed in service, significantly reducing taxable income.
Yes. Depreciation is based on ownership, not payment status. If you finance a $200,000 excavator, you can depreciate (or Section 179 expense) the full $200,000 in year 1 even though you're still making payments. The interest on the financing is a separate deduction.
Tax disclaimer: This calculator provides estimates based on standard IRS MACRS rules from Publication 946. Your actual depreciation deduction may differ based on business-use percentage, the mid-quarter convention, state tax conformity, bonus depreciation phase-outs, and other factors specific to your situation. Always consult a licensed CPA or tax professional before making tax decisions.