The short answer
Section 179 lets a business elect to deduct the cost of qualifying equipment, including a work truck, in the year it's placed in service instead of depreciating it over several years. For tax years beginning in 2026, the IRS limit is $2,560,000, reduced dollar-for-dollar once qualifying purchases exceed $4,090,000; heavy SUVs (over 6,000 lb GVWR, up to 14,000 lb) are capped at $32,000 (Rev. Proc. 2025-32).
Pickups with a cargo bed at least 6 feet long that isn't readily accessible from the cab are among the vehicles the IRS excludes from that SUV cap (Publication 946). Vehicles generally must be used more than 50% for business. This is a summary, not tax advice.
The 2026 numbers
| Item | Tax years beginning in 2026 | Source |
|---|---|---|
| Section 179 maximum | $2,560,000 | Rev. Proc. 2025-32, sec. 4.24 |
| Phase-out begins | $4,090,000 of section 179 property placed in service | Rev. Proc. 2025-32 |
| Heavy SUV limit (over 6,000 lb, not over 14,000 lb GVWR) | $32,000 | Rev. Proc. 2025-32; Pub. 946 |
| Bonus depreciation | Permanent 100% for qualified property acquired after Jan. 19, 2025 | IRS IR-2026-06 (Notice 2026-11) |
The SUV cap and its exceptions
Publication 946 says the heavy-SUV limit doesn't apply to a vehicle that:
- seats more than nine passengers behind the driver's seat;
- has a cargo area (open or enclosed by a cap) at least 6 feet in interior length that isn't readily accessible from the passenger compartment;
- or meets the publication's other listed exceptions (such as certain vans).
So an 8-foot-bed work pickup and a three-row SUV can be treated very differently. Check the bed length on the window sticker and ask your tax professional.
Lease vs. buy
| Buy (cash or loan) | Lease | |
|---|---|---|
| Ownership | You own it; Section 179 or depreciation may apply | The lessor owns it |
| Deduction | Section 179 / depreciation on the business-use share | Lease payments for business use; IRS Pub. 463 covers leased-vehicle rules, including inclusion amounts |
| Miles and wear | No limits | Annual mileage caps and excess-wear charges (our finance FAQ) |
| Upfits and plows | Your call | Ask the lessor before modifying |
Farm notes
The IRS Farmer's Tax Guide (Publication 225) covers depreciation and section 179 for farm property. Farm trucks registered at 16,000 lb or more keep their plates when sold (WisDOT). See also our farm truck buying guide.
Who to talk to
Questions
What is the Section 179 limit for 2026?
$2,560,000 for tax years beginning in 2026, phasing out above $4,090,000 of qualifying property; heavy SUVs are capped at $32,000 (IRS Rev. Proc. 2025-32).
Does a pickup qualify for the full Section 179 deduction?
A pickup with a cargo area at least 6 feet long that isn't readily accessible from the passenger compartment is excluded from the heavy-SUV cap (IRS Pub. 946). Business use and other rules still apply.
Can I take Section 179 on a leased truck?
Section 179 applies to property you buy for business. Leased vehicles follow different rules (IRS Pub. 463). Ask your tax professional.
Next steps at Swant Graber
Swant Graber Motors (Chevrolet, Ram, Dodge): 1690 E Division Ave, Barron, WI 54812, 715-537-5657. Swant Graber Ford: 1697 E Division Ave, 715-537-9500. Search new or used inventory, or see shop near you for model-by-model answers.
