2026 Section 179 Tax Deduction Overview & Limits

Section 179 allows qualifying businesses to deduct the full purchase price of eligible equipment --including many commercial Ford vehicles -- during the tax year it's placed into service. This powerful incentive is designed to encourage small business investment and can significantly reduce your taxable income when you buy or lease a work vehicle before December 31, 2026. Here are some additional details about this exciting tax incentive:¹

• 2026 Deduction Limit: $2,560,000¹
  • Good on new and used equipment (as long as new to the buyer).
  • Purchased as well as leased vehicles qualify.

• 2026 Spending Cap: $4,090,000¹
  • Defined as: The maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar-for-dollar basis (making it a true small-business incentive).
  • Spend beyond this cap and your allowed Section 179 deduction begins to be reduced on a dollar-for-dollar basis, making it a true "small business tax incentive".
  • Deduction is completely phased out at $6,650,000.

• 2026 Bonus Depreciation: 100%¹
  • Defined as: a tax incentive that allows a business to immediately deduct a large percentage of the purchase price of eligible assets.
  • Generally taken after the Section 179 Spending Cap is reached.
  • Applies to both new and used vehicles.

• For your vehicle purchase to qualify underSection 179, it must be:
  • Purchased and put into use before Dec. 31, 2026¹.
  • Used for business purposes more than 50% of the time.
  • Titled in the company's name (not the company's owner's name).

Eligible Ford models include, but are not limited to:

• F-150
• F-150 Lightning
• Super Duty®
• Transit Cargo Van
• Transit Passenger Wagon
• Explorer
• Expedition
• Expedition MAX