If you're planning to invest in new or used truck equipment this year, now is the time to take advantage of the Section 179 deduction. Eligible businesses may deduct up to $2,560,000 on qualifying new or used trucks and trailers that are purchased or financed and placed into service by December 31, 2026.
Rush Truck Centers offers a wide selection of new and used trucks and trailers, including Ready to Roll® inventory that’s available when you need it. With the industry’s transition to 2027 EPA emissions standards approaching, purchasing available inventory now may provide additional flexibility while helping you take advantage of current truck availability before new requirements take effect.
2026 Deduction Limit and Spending Thresholds
- Maximum Section 179 Deduction: $2,560,000
- Phaseout Begins After: $4,090,000 in qualifying business purchases made between January 1 and December 31, 2026
- Deduction Fully Phased Out After: $6,650,000 in qualifying business purchases
- Bonus Depreciation: 100% of eligible cost of qualifying property acquired after January 19, 2025.
We encourage you to contact your tax advisor concerning the 2026 Section 179 deduction and specific qualification details.
New to Section 179?
Learn how to use the Section 179 deduction to decrease your business’s taxable income, including how much you
can deduct, which vehicles qualify and how to file for the deduction, on The Long Haul blog.
Frequently Asked Questions
What is the 2026 Section 179 deduction limit?
This Section 179 deduction limit amount changes from year to year to adjust for inflation. For 2026, the maximum Section 179 deduction is $2,560,000, an increase of $60,000 from 2025.
The 2026 Section 179 spending cap is $4,090,000. The available deduction is reduced dollar-for-dollar by the amount of qualifying Section 179 property placed in service during the tax year that exceeds $4,090,000. Other limitations may also apply, including taxable income and business-use requirements.
Which vehicles qualify for the Section 179 deduction?
Many vehicles purchased for business use may qualify for Section 179, including new and used commercial trucks, trailers, vocational trucks, cargo vans and other business vehicles. The amount that can be deducted depends in part on the vehicle's weight, configuration and business use.
Different limitations may apply to passenger vehicles and certain SUVs. For 2026, certain SUVs with a GVWR above 6,000 and below 14,000 lbs. are subject to a $32,000 Section 179 deduction limit. Certain vehicles designed primarily for commercial or nonpersonal use are not subject to this SUV limit.
Consult your tax advisor to determine whether a specific vehicle qualifies and what deduction limits apply.
Do used trucks qualify for Section 179?
Yes. Used trucks may qualify for the Section 179 deduction — the truck just has to be "new to you". However, inherited or gifted vehicles do not qualify for Section 179, and restrictions apply to vehicles purchased from certain related persons.
Do financed trucks qualify for Section 179?
Yes. A qualifying truck purchased with financing may be eligible for the Section 179 deduction. The vehicle must meet Section 179 requirements and be placed in service during the applicable tax year. Consult your tax advisor regarding your specific financing arrangement.
When does my truck need to be placed in service to qualify?
To claim a Section 179 deduction for the 2026 tax year, a qualifying vehicle generally must be purchased and placed in service by December 31, 2026. Simply ordering or paying for a truck may not be enough; it generally must be ready and available for its intended business use.
How much does a truck have to be used for business to qualify?
Vehicles must be used for business more than 50% of the time to qualify for Section 179. If a vehicle is used for both business and personal use, the deductible amount is limited based on its percentage of qualified business use.
What's the difference between Section 179 and bonus depreciation?
Both Section 179 and bonus depreciation allow you to deduct some or all of the cost of qualifying vehicles in the year they're placed in service, but different rules and limitations apply.
- Section 179 has an annual deduction limit and begins to phase out when qualifying purchases exceed a specified threshold.
- Section 179 deductions cannot exceed your qualifying taxable income, whereas bonus depreciation is not subject to the same income limitations.
- Eligible property may qualify for 100% bonus depreciation.
- When both deductions are used, Section 179 is generally applied before bonus depreciation.
Can my business use both a Section 179 deduction and bonus depreciation in the same tax year?
Yes. It is possible to claim both Section 179 and bonus depreciation on qualifying vehicles in the same tax year. When both are claimed, the Section 179 deduction is generally applied first, followed by bonus depreciation.
How can I estimate my potential Section 179 tax savings?
Use the Section179.org Savings Calculator to estimate your potential deduction and tax savings. Actual tax savings depend on your specific circumstances, so consult your tax advisor before making purchasing or tax decisions.