As the current tax year draws to a close, businesses considering a new work truck or commercial van have an important deadline approaching. Section 179 of the IRS tax code allows eligible businesses to deduct qualifying equipment purchases—up to $2,560,000 for 2026—during the same tax year, potentially reducing their taxable income. However, taking advantage of this provision involves more than simply purchasing a qualifying vehicle before the end of the year.
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Your Vehicle Must Be Ready for Business Use by December 31
To claim a Section 179 deduction for 2026, a qualifying vehicle must be purchased and placed into service by December 31. This means it must be ready and available for its intended business purpose.
For example, a contractor in Trenton who orders a Ford Super Duty in December but doesn't receive it until January generally cannot claim the deduction for 2026. Likewise, making a down payment or signing a purchase agreement before year-end isn't sufficient if the vehicle isn't ready for work.
Businesses requiring specialized equipment or commercial upfits should account for any additional preparation time when planning their purchases.
Business Use Must Exceed 50%
Another important requirement is that the vehicle must be used for business purposes more than 50% of the time. A business owner in Princeton who uses a Ford F-150 for both work and personal transportation should maintain records distinguishing business mileage from personal trips. Only the business-use portion of the vehicle's cost is generally eligible for deduction.
It's also important to consider future usage. If business use drops to 50% or less during the applicable recovery period, some previously claimed Section 179 deductions may need to be recaptured.
Explore Ford Commercial Vehicles in Lawrenceville, NJ
Ciocca Ford of Lawrenceville offers Ford trucks and commercial vans for a variety of business applications. Our team can help you explore available models, compare configurations, and discuss financing options before the year-end deadline. Contact us to learn more about our commercial vehicle inventory and consult a qualified tax professional to determine how Section 179 applies to your business. We look forward to working with you.