The Section 179 tax deduction helps small and medium-sized businesses lower their tax bill by writing off the cost of qualifying commercial vehicles and equipment in the year they're purchased. Thanks to higher limits signed into law in 2025, 2026 is one of the best years ever for business owners in Butler, Morris County and North Jersey to upgrade their fleet with a new Ford work truck, van or SUV.
2026 Section 179 Deduction Limits
· 2026 Section 179 Deduction Limit: $2,560,000. This applies to new and used vehicles and equipment, as long as they are new to the buyer.¹
· 2026 Spending Cap (Phase-Out Threshold): $4,090,000. The deduction is reduced dollar for dollar once total qualifying purchases exceed this amount.¹
· 2026 Bonus Depreciation: 100%. This is available for new and used qualifying property and can be combined with Section 179.¹
· Heavy SUV Limit: $32,000. SUVs with a Gross Vehicle Weight Rating (GVWR) between 6,001 and 14,000 pounds can deduct up to $32,000 under Section 179 in 2026. The remaining cost may be eligible for bonus depreciation.¹
· Heavy-Duty Pickups and Work Vans: Full Deduction Eligible. Pickups over 6,000 pounds GVWR with a cargo bed of at least six feet, cargo vans, and chassis cab trucks are not subject to the SUV limit and may qualify for a full first-year deduction.¹
How to Qualify for Section 179 in 2026
To claim the Section 179 deduction on a business vehicle, your purchase generally must meet these requirements:
· The vehicle must be used for business more than 50% of the time.
· The vehicle must be purchased or financed and placed in service by December 31, 2026.
· The deduction cannot exceed your business's taxable income for the year, though unused amounts can carry forward.
Financed vehicles qualify too, so you can take the deduction this year while spreading out your payments.
Ford Vehicles Eligible for Section 179
Many new Ford trucks, vans and SUVs qualify for full or partial Section 179 tax deductions. Qualifying Ford models for 2026 include:
May Qualify for the Full Deduction:
· Ford F-250 Super Duty
· Ford F-350 Super Duty
· Ford F-450 Super Duty
· Ford F-550 Super Duty Chassis Cab
· Ford Transit Cargo Van
May Qualify for a Partial Deduction ($32,000 Section 179 Limit Plus Bonus Depreciation):
· Ford Expedition
· Ford Expedition MAX
· Ford Transit Passenger Van (eligibility depends on seating configuration)
Eligibility depends on the specific configuration, including GVWR, bed length and seating. Ask our commercial sales team which models in our inventory qualify.
Frequently Asked Questions About Section 179
What is the Section 179 deduction limit for 2026?
The maximum Section 179 deduction for 2026 is $2,560,000, with a phase-out
beginning at $4,090,000 in total qualifying purchases.
Does a Ford F-250 qualify for Section 179?
Yes. Most Ford Super Duty pickups have a GVWR well over 6,000 pounds and, when
equipped with a bed of six feet or longer, may qualify for the full Section 179
deduction.
Can I use Section 179 on a used Ford truck?
Yes. Used vehicles qualify as long as they are new to your business and used
more than 50% for business purposes.
When do I need to buy my vehicle to claim Section 179 for 2026?
The vehicle must be purchased and placed in service by December 31, 2026.
Ready to save? Browse our Ford work trucks or contact Route 23 Ford in Butler, NJ to speak with our commercial vehicle team today.
¹ Source: IRS, Rev. Proc. 2025-32. Route 23 Ford does not provide tax advice. Deduction amounts depend on your business's specific circumstances, and state tax rules, including New Jersey's, may differ from federal limits. Consult a qualified tax professional before making a purchase decision.
