Section 168(k) · United States
Bonus depreciation on
mining equipment.
Section 168(k) is back at 100 % and permanent. Mining machines are five-year property. The hard part is the calendar: they have to be running by 31 December.
Bought this year, deducted this year.
Buy qualifying equipment in the United States and you take the whole price off your taxable profit the year it starts working. Not a fifth a year for five years. All of it, the first year.
The rule was cut back after 2022. The law signed on 4 July 2025 brought it back to 100 % and made it permanent, for anything acquired and placed in service after 19 January 2025. Mining machines are five-year property, so they count. So do used machines, as long as you have not owned them before and you are not buying from someone related to you.
It reduces profit, not tax
A company with $3,700,000 of taxable profit, at the top federal rate of 37 %.
A million dollars of machines does not remove a million dollars of tax. It removes a million dollars of profit — and the tax on it.
Three conditions, and only three
- You own the equipment. The invoice is in your name or your company's. A contract that pays a share of someone else's mining does not qualify.
- It is working by 31 December. The tax term is placed in service: installed, powered and able to run. Ordered in November, switched on in February — that is next year's deduction.
- Your own money is at risk. Cash you paid, or debt you are responsible for.
The second condition is a calendar problem, and it is the one we solve: power, racks and hands to get machines energized before the year closes.
Asked and answered.
What is bonus depreciation under Section 168(k)?
You take the whole price of qualifying U.S. equipment off your taxable profit in the year it starts working, instead of a fifth a year for five years.
Is it still 100 %?
Yes. The rule was cut back after 2022. The law signed on 4 July 2025 brought it back to 100 % and made it permanent, for anything acquired and placed in service after 19 January 2025.
Do Bitcoin mining machines qualify?
Mining machines are five-year property, so they count.
Do used machines qualify?
Yes, as long as you have not owned them before and you are not buying from someone related to you.
What is the deadline?
The equipment has to be placed in service by 31 December: installed, powered and able to run. Ordered in November and switched on in February is next year's deduction.
Does a hosting or revenue-share contract qualify?
No. You have to own the equipment, with the invoice in your name or your company's. A contract that pays a share of someone else's mining does not qualify.
Does a dollar of equipment remove a dollar of tax?
No. It removes a dollar of profit, and the tax on that dollar. At the top federal rate of 37 %, a million dollars of machines removes $370,000 of tax.
Can you get machines running before 31 December?
That is the condition we solve: power, racks and hands to get machines energized before the year closes. Tell us the date you need.
Talk to the operator.
Tell us your load, your timeline and your machines. You get power, capacity and a date — from the person who runs the site.
management@snoperations.com+1 (872) 377-0580
Illinois, United States