2026 Section 179 Highlights
- Maximum deduction: Up to $2,560,000
- Phase-out begins after $4,090,000 in qualifying equipment purchases
- Applies to new and used qualifying commercial vehicles
- Vehicle must be used more than 50% for business
- Vehicle must be placed in service by December 31, 2026
- 100% bonus depreciation may also be available on qualifying property
What to know about IRS Section 179 and vehicle deductions
Purchasing commercial vehicles is a significant investment for any business. Whether you're a contractor, landscaper, electrician, plumber, delivery company, or service provider, having dependable work trucks and vans is essential to keeping your business moving.
If you're considering purchasing Ford commercial vehicles, including work trucks or vans, IRS Section 179 may allow your business to deduct a substantial portion—or even the full purchase price—when the vehicle is placed into service, subject to IRS requirements.
What is IRS Section 179?
IRS Section 179 is a section of the U.S. tax code that provides a write-off for specified equipment purchases – including vehicles. Its main feature is that it lets small and mid-sized businesses deduct the full purchase price of equipment as soon as it is put into service. The benefit is that, at tax time, companies can deduct the equipment as a current expense rather than having to depreciate it, which puts them in a stronger financial position. Purchases and in-service dates must be completed by Dec. 31 to qualify for the appropriate tax year.
Vehicle purchases are one of the most popular uses of Section 179. Here are some important points to consider when planning to buy a work truck or van:
What vehicles are covered by Section 179?
Many Ford commercial vehicles with a Gross Vehicle Weight Rating (GVWR) exceeding 6,000 pounds may qualify for a Section 179 deduction when they're used more than 50% for business purposes. Certain cargo vans, box trucks, chassis cabs, and other vehicles designed primarily for commercial use may qualify for larger deductions than passenger vehicles.
Common qualifying vehicle types include:- Pickups and vans used more than 50% for business with a GVWR exceeding 6,000 pounds. These vehicles may qualify for a Section 179 deduction and may also be eligible for bonus depreciation.
- Vehicles designed specifically for work that aren't typically used for personal transportation, such as forklifts, trailers, or shuttle vans with seating for more than nine passengers behind the driver's seat.
- Delivery vehicles, including cargo vans and box trucks with no rear passenger seating.
- Specialty commercial vehicles such as hearses and ambulances.
Ford vehicles that qualify for Section 179
- F-250 Super Duty truck
- F-350 Super Duty truck
- F-450 Super Duty truck
- F-550 Super Duty truck
- F-650 Medium Duty heavy truck
- F-750 Medium Duty heavy truck
- Transit Cargo Van
- Transit Chassis Cab
- E-Series Cutaway
- E-Series Stripped Chassis
Not every configuration qualifies for the same deduction. Deduction amounts depend on the vehicle's GVWR, how it is used, and your business's tax situation. Always consult your CPA or tax advisor before making a purchase.
You can browse our inventory of work trucks and vans, or contact our commercial vehicles team for additional information.
What is the allowance for commercial vehicle depreciation?
Section 179 has specific dollar limits on how much you can deduct. For tax year 2026, businesses may deduct up to $2,560,000 in qualifying equipment purchases under Section 179. The deduction begins to phase out once total qualifying equipment purchases exceed $4,090,000. Both new and new-to-you commercial vehicles qualify for the deduction. Under Section 179, companies can write off the purchase price of any qualified equipment – including vehicles – up to the deduction limit.
Consult the Mullinax Ford commercial vehicles team for more detailed information.
The amount your business may deduct depends on several factors, including the type of vehicle, its Gross Vehicle Weight Rating (GVWR), how much it's used for business, and your overall tax situation. Many Ford commercial trucks and vans may qualify for the full Section 179 deduction, while certain heavy SUVs (6,001–14,000 lbs. GVWR) are subject to a separate Section 179 limit of $32,000 for tax year 2026. Additional first-year deductions through bonus depreciation may also be available for qualifying vehicles. Because every business's tax situation is different, we recommend consulting your CPA or tax advisor to determine your potential deduction before purchasing a commercial vehicle.
Additional questions about using IRS Section 179
Can businesses use Section 179 and bonus depreciation together?
Yes. Many businesses use Section 179 first and then apply bonus depreciation to any remaining qualifying basis. Depending on your business income and the type of vehicle purchased, combining the two provisions may maximize your first-year deduction. Your CPA can determine the best strategy for your situation.
What is “bonus depreciation”?
Bonus depreciation allows businesses to deduct additional qualifying costs beyond the Section 179 deduction. Thanks to current tax law, eligible property placed into service in 2026 may qualify for 100% bonus depreciation. Businesses may be able to use both Section 179 and bonus depreciation together, depending on their circumstances. Consult your tax professional for guidance.
What’s the difference between Section 179 and bonus depreciation?
Under Section 179, businesses can deduct a set amount of the cost of new business assets, giving purchasers more flexibility on when they take the deduction. Bonus depreciation lets them deduct a percentage of the cost and can apply to more spending per year.
Businesses can take Section 179 and bonus deductions in the same year for the same assets.
How do you take advantage of the Section 179 deduction?
The deduction is not automatic. You have to elect to take it, which means filling out Part 1 of IRS form 4562.
Maximize Your 2026 Tax Savings with Section 179
If Section 179 makes sense for your business, our Commercial Vehicle Team can help you find the right Ford truck or van for your needs. Whether you're expanding your fleet or replacing aging vehicles, we'll help you choose qualifying commercial vehicles while your CPA helps determine the tax benefits available to your business. Browse our commercial inventory or contact Mullinax Ford of Mobile and speak with one of our commercial account managers today.
Remember that Section 179 takes effect as soon as you put the vehicle into service, so don’t wait to take full advantage of this tax-saving strategy.
