For many trucking companies, purchasing new and used trucks and trailers is essential for growth. However, these purchases can be costly, often causing fleets to delay plans to expand operations or upgrade vehicles.
As commercial vehicle costs continue to rise, knowing when to buy is just as critical as knowing what to buy. One way to do this is to get familiar with the section 179 tax deduction during the 2026 buying season.
What Is the Section 179 Deduction?
Section 179 of the U.S. tax code allows businesses to deduct the full cost of qualifying assets in the year that asset is placed into service.
This means your business can purchase or finance a qualified new or used vehicle and claim the full eligible amount, so long as the purchase date and in-service date both fall before December 31, 2026.
Benefits of a Section 179 Tax Write-Off
The primary benefit of a section 179 deduction is that you won’t have to wait years to recover the cost of your truck or trailer through depreciation. Instead, your business gets significant upfront tax savings that can lead to:
- Improved cash flow
- Lower taxable income
- More flexibility for expansion
- Greater ROI for equipment purchases
- Increased purchasing power
What Is the IRS Section 179 Deduction Limit for 2026?
The maximum section 179 deduction is $2.56 million for tax year 2026, marking the second year that the maximum deduction limit has reached $2.5 million or higher.
Please note that section 179 also includes a spending limit and phase-out threshold of $4.09 million for the tax year 2026. If your total purchase is higher than that, then the maximum deduction is reduced dollar-for-dollar by the excess amount.
Bonus Depreciation
In addition to section 179 changes, that same legislation increased bonus depreciation back to 100 percent, after spending the previous few years at 60 percent or lower.
Bonus depreciation differs from section 179 in a few key areas.
- Section 179 – You choose your deduction amount, but it cannot exceed your company’s taxable income and create a net operating loss for the year.
- Bonus Depreciation – This approach uses an automatic, percentage-based deduction set at 100% for the 2026 tax year. There is also no business income limit, meaning your deduction can create a net loss.
Many trucking businesses choose to use both section 179 and bonus depreciation for qualified truck and trailer purchases. By doing this, your company can deduct the entire purchase price in the first year. IRS rules require you to apply section 179 first, then bonus depreciation on the remaining amount.
What Equipment Qualifies for Section 179?
Your business may qualify for a section 179 deduction on a wide range of commercial trucks, trailers, vans and other business vehicles weighing more than 6,000 pounds.
Both new and used equipment can qualify, giving your company more flexibility when it's time to buy. However, there are a few conditions:
- All purchases must be for business use.
- Anything purchased must be used for more than 50% business purposes.
- Equipment cannot be inherited, gifted or acquired from a related party.
How Equipment Financing Works With Section 179
Vehicles purchased with equipment financing often qualify for a section 179 deduction. In fact, many fleets use commercial equipment financing while still claiming the full eligible deduction on qualified trucks.
This approach lets your trucking company retain more working capital by receiving immediate tax benefits while spreading payments out over time.
Depending on your financing provider, you may even get additional support, such as down payment assistance or the option to split your down payment, to improve your cash flow further.
Year-End is the Best Time to Buy!
As we move through Q4 and into the end of 2026, now is the time to take advantage of section 179 benefits!
Whether you’re looking to expand your fleet or upgrade from older vehicles, RTS can help by providing quick, reliable equipment financing that complements your section 179 tax savings — helping you preserve cash flow as you grow your business.
Learn more about our equipment financing solutions or fill out the form to connect with an RTS representative today!
Disclaimer: Please consult your tax professional to ensure you can take advantage of section 179 benefits.