2026 BUSINESS VEHICLE TAX ADVANTAGES

Eligibility must be confirmed for the specific vehicle and your business. Ask our team for vehicle specifications, including the manufacturer’s Gross Vehicle Weight Rating (GVWR), to review with your tax adviser.*

For tax years beginning in 2026, the federal Section 179 deduction for a qualifying heavy SUV is limited to $32,000, subject to business-use, income and other limitations. This SUV limit applies to Section 179, not to all potential depreciation deductions.

Eligible vehicles acquired and placed in service after January 19, 2025 may qualify for 100% federal bonus depreciation on the remaining depreciable business-use basis after any Section 179 deduction. This may allow eligible taxpayers to deduct the full qualifying business-use cost in the first year. It does not mean that every buyer can deduct the entire purchase price or receive that amount back in taxes.

• Vehicle weight: The heavy-SUV rules generally apply to vehicles with a GVWR greater than 6,000 pounds and no more than 14,000 pounds. Confirm the rating for the specific vehicle, not its curb weight.
• Business use: The vehicle must be used more than 50% for qualified business purposes. Personal use does not qualify, and ordinary commuting generally counts as personal use.
• Timing: For a 2026 deduction on a calendar-year return, the vehicle must be placed in service by December 31, 2026, meaning ready and available for business use. An order or deposit alone is not enough.
• Records: Maintain documentation of business use and purchase details. Your tax adviser can determine the applicable deduction and filing requirements.