Section 179 Tax Deduction

Instead of recovering the entire cost of qualifying business equipment through depreciation over several years, Section 179 allows businesses to take an upfront deduction. For 2026, the overall deduction limit is $2,560,000, with the deduction beginning to phase out once total qualifying purchases exceed $4,090,000.

Those are overall limits covering qualifying property purchased by a business, not the amount that can necessarily be deducted for an individual vehicle. Vehicle type, weight, purchase price, and business use can all affect the available deduction.

To qualify, a vehicle must generally be used for business purposes more than 50% of the time and placed into service during the tax year. For a 2026 deduction, that means the vehicle must be ready and available for business use by December 31, 2026.

Gross Vehicle Weight Rating (GVWR) plays an important role in how a vehicle is treated under Section 179. Trucks and commercial vans above 6,000 pounds GVWR can qualify for more favorable deductions than lighter passenger vehicles.

• Ford Super Duty: Heavy-duty trucks like the F-250, F-350, and F-450 provide the towing, payload, and configuration options needed for demanding commercial work.
• Ford Transit: Cargo Van, Passenger Van, Cutaway, and Chassis Cab configurations give businesses plenty of ways to accommodate cargo, passengers, equipment, or specialized upfits.
• Ford F-150: Select configurations exceed 6,000 pounds GVWR, giving businesses that don't require a heavy-duty truck another option to consider.
• Ford Expedition: The full-size Ford SUV can provide business owners with substantial passenger and cargo space. Heavy SUVs between 6,000 and 14,000 pounds GVWR are subject to a separate Section 179 limit of $32,000 for 2026.

A vehicle purchase that already makes sense for your business can potentially provide a tax benefit as well. A contractor in Brockton might need another Super Duty for towing equipment, while a service business in Marshfield could put the enclosed cargo space of a Transit to work.

Section 179 can allow eligible businesses to deduct more of that investment sooner instead of spreading depreciation across several years. Large commercial fleets, small businesses, sole proprietors, and self-employed professionals can all use Section 179 when they meet the requirements. Because tax circumstances vary by business and vehicle, consult a qualified tax professional to determine eligibility and the deduction available for a specific purchase.