Buy Vehicle Before 12/31/26!!

November 14th, 2026 at 8:36 AM

Do you need a new business vehicle?

Buying one before December 31, 2026, could deliver substantial tax savings, thanks to permanent 100 percent bonus depreciation and generous Section 179 deductions.

But not all vehicles qualify for the same tax benefits. Here’s what you need to know.

1. Heavy SUVs and crossovers. New or used SUVs with a gross vehicle weight rating (GVWR) exceeding 6,000 pounds may qualify for 100 percent bonus depreciation. Buy a $70,000 SUV used 90 percent for business, and you could deduct the entire $63,000 business cost in 2026.

2. Heavy pickup trucks. Qualifying pickups with a GVWR over 6,000 pounds and a cargo bed at least six feet long can qualify for 100 percent bonus depreciation or Section 179 expensing.

3. Cargo and passenger vans. Certain heavy vans also qualify for 100 percent bonus depreciation or generous Section 179 deductions, provided they meet specific requirements.

4. Cars and lighter vehicles. These vehicles face stricter depreciation limits. For 2026, the maximum first-year deduction is generally $20,300, including bonus depreciation, assuming 100 percent business use.

5. Electric vehicles. Federal electric vehicle purchase credits expired September 30, 2025. However, electric vehicles generally fall into the categories above and remain eligible for depreciation deductions or Section 179 expensing.

Don’t miss the deadline! You must purchase your vehicle and place it in business service by December 31, 2026. Driving at least one business mile helps document that requirement.

The bottom line. Vehicle selection, business use, and timing determine your deductions.

Mark S. Fineberg, CPA