Section 179 Tax Savings

2026 Section 179 & Bonus Depreciation at a Glance

• • 2026 Section 179 Deduction Limit: $2,560,000
• • 2026 Equipment Spending Cap: $4,090,000 (Deduction begins phasing out dollar-for-dollar above this amount)
• • 2026 Bonus Depreciation: 100% (Applies to remaining eligible equipment costs above the Section 179 limit)
• • Year-End Deadline: Equipment must be purchased/financed and placed in service by December 31, 2026.

Which Commercial Trucks Qualify?

Most commercial trucks and vocational vehicles exceed the IRS weight and configuration thresholds required for full, uncapped Section 179 expensing:

• • Heavy-Duty & Medium-Duty Trucks (Over 14,000 lbs. GVWR): Class 4 through Class 8 trucks—including semi-tractors, dump trucks, box trucks, flatbeds, service/crane trucks, roll-offs, and refrigerated trucks—are exempt from passenger vehicle caps and qualify for the full Section 179 deduction.
• • Light-Duty Work Trucks & Vans (6,001 – 14,000 lbs. GVWR): Pickup trucks with a cargo bed of at least 6 feet and dedicated cargo vans with no rear passenger seating generally qualify for full Section 179 expensing. (Note: Certain heavy passenger SUVs in this weight class are capped at $32,000 for Section 179, though remaining basis may qualify for bonus depreciation).
• • New AND Used Inventory: Section 179 applies to both brand-new and pre-owned trucks, provided the vehicle is "new to you" and your business.
• • Upfits & Bodies: Commercial bodies, liftgates, cranes, and specialized vocational upfits installed on qualifying chassis generally qualify as part of the total equipment cost.

Example: How Section 179 Lowers Your True Truck Cost
Buying a truck before December 31 reduces your taxable income immediately, freeing up working capital for fuel, maintenance, and payroll.

(Note: Because Section 179 allows you to deduct the full purchase price even when you finance the truck, your year-one tax savings can often exceed your total cash down payment and monthly loan payments combined.)

4 Steps to Take Advantage Before Year-End

1. 1. Verify Business-Use Requirements: The vehicle must be used for qualified business purposes more than 50% of the time. (Deductions are prorated based on your exact percentage of business use).
2. 2. Confirm "Placed in Service" Timing: Simply signing a purchase order or putting down a deposit before December 31 is not enough. To claim the deduction on your 2026 return, the truck must be delivered, titled, and ready for business use on or before December 31, 2026. Because specialized upfits and factory builds take time, selecting in-stock, work-ready inventory is the safest way to guarantee year-end delivery.
3. 3. Lock In Financing Early: Purchases financed through a commercial equipment loan or qualifying lease (such as a $1 buyout / capital lease) qualify just like cash purchases—allowing you to preserve cash reserves while capturing the full write-off.
4. 4. Consult Your CPA: Every business has unique profitability and tax liability circumstances (for example, Section 179 deductions cannot exceed your business's net taxable income, whereas 100% bonus depreciation has no taxable income cap). Confirm with your accountant how to structure your purchase.

Ready to Put a Truck to Work Before December 31?

Don't wait until the final week of December when inventory and financing queues tighten. Browse our in-stock, work-ready commercial trucks or speak with our commercial sales and finance team today to lock in delivery before the year-end deadline.

• • Browse In-Stock Commercial Inventory
• • Get Pre-Approved for Section 179 Financing
• • Contact Our Commercial Truck Specialists

Disclaimer: The information provided on this page is for general educational purposes only and does not constitute formal tax, legal, or accounting advice. Tax laws and individual business eligibility vary. Please consult your CPA or tax advisor to verify how Section 179 and Bonus Depreciation apply to your specific business situation.

For more information on 2026 Section 179 Deductions, view the IRS Complete Guide & Limits at: https://www.section179.org