Tax Write Off

Maximize Your 2026 Tax Deductions

Under Section 179 of the IRS tax code, as expanded by the One Big Beautiful Bill Act of 2025, many businesses that invest in new or used equipment, including qualifying commercial vehicles, may be able to write off up to the entire purchase price on their 2026 tax return.

2026 Section 179 at a Glance

• Section 179 deduction limit: $2,560,000
• Equipment spending threshold: The deduction starts to phase out, dollar for dollar, once total equipment placed in service in 2026 exceeds $4,090,000. It is fully phased out at $6,650,000.
• Bonus depreciation: 100% bonus depreciation is back permanently for qualifying property acquired after January 19, 2025. It can be applied after Section 179.
• Heavy SUVs (6,001–14,000 lbs GVWR): The Section 179 deduction is capped at $32,000. The remaining cost may qualify for bonus depreciation.

Which Vehicles Qualify?

• Work trucks, cargo vans and commercial vehicles: Heavy work trucks and vans over 6,000 lbs GVWR may be eligible for the full Section 179 deduction, not the $32,000 SUV cap. This includes vehicles over 14,000 lbs GVWR, cargo vans with no seating behind the driver and an enclosed cargo area, passenger vans that seat more than 9 people behind the driver, and pickups with a cargo bed at least 6 feet long.
• Heavy SUVs and crossovers (6,001–14,000 lbs GVWR): Up to $32,000 under Section 179, with bonus depreciation potentially available on the rest.
• Passenger vehicles (6,000 lbs GVWR or less): These are subject to lower IRS "luxury auto" depreciation limits.

Some IRS Rules About The Tax Write-Off:

• Vehicles must be used for business purposes more than 50% of the time. The deduction is limited to the business-use percentage.
• Vehicles must be purchased or financed and placed in service (delivered and ready for use) by midnight December 31, 2026. Ordering or paying alone is not enough.
• Both new and used vehicles can qualify, as long as they are new to your business.
• Financed vehicles qualify. Leases may or may not, depending on the type of lease.
• The deduction cannot exceed your business's taxable income, but any unused amount can be carried forward.
• Consult a Tax Accountant for complete details.

Disclaimer:

This page is for general informational purposes only and is not meant to be tax advice, or imply any guarantee of a particular vehicle qualifying for a Section 179 deduction of any amount. Please consult a qualified tax professional to ensure you meet the requirements and maximize your deductions. Eligibility and rules can change, so always check with a tax advisor for up-to-date information.