Businesses could qualify for a large tax deduction on their next commercial vehicle purchase.
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if a business buys (or leases) a piece of qualifying equipment, they can deduct the full purchase price from their gross income. It's an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.
Work Truck Solutions is not a tax advisor; consult a professional for financial and/or tax advice. View More Information at IRS.GOV.
When a business buys certain items of equipment, it typically gets to write them off a little at a time through depreciation. In other words, if a company spends $50,000 on a machine, it gets to write off maybe $10,000 a year for five years. Section 179 allows business owners to write off the entire equipment purchase for the year they buy it.
Section 179 has limits – there are caps to the total amount written off ($2,560,000 for 2026), and limits to the total amount of the equipment purchased ($6,650,000 in 2026). The deduction begins to phase out dollar-for-dollar after $4,090,000 is spent by a given business, so this makes it a true small and medium-sized business deduction.
To qualify for the Section 179 Deduction, the equipment purchased or financed must be placed into service between January 1, 2026 and December 31, 2026.
Work Truck Solutions is not a tax advisor; consult a professional for financial and/or tax advice. View More Information at IRS.GOV.
This powerful business tax incentive can apply to both new and used equipment, certain business vehicles, and off‑the‑shelf software. Whether you’re upgrading manufacturing machinery, adding vehicles, or modernizing office technology, Section 179 helps small and medium-sized businesses save money while expanding operations.
The above calculations represent a hypothetical purchase, your purchase costs will differ. Discuss your potential savings with your tax professional(s).
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