2026 Section 179 Tax Deduction Information

If you're a small business owner or self-employed professional in the surrounding Hill Country, the Section 179 tax deduction could help you save significantly when purchasing or leasing a qualifying Chevy truck, SUV or commercial van for your business. 

At our Chevy dealer near Devine, we work with entrepreneurs, contractors, ranchers and business owners throughout the region who need dependable work vehicles that also deliver potentialtax advantages. We're here to provide some general information about Section 179 for the 2026 tax year so that you can maximize your tax benefits while upgrading your fleet to the latest Chevy work trucks and cargo vans for sale in Uvalde. Stop in today to learn more!

2026 Section 179 Tax Deduction Overview & Limits

Section 179 is a federal tax incentive designed to encourage small business investment by making the purchases of assets like qualifying vehicles fully tax advantaged. For tax year 2026, business owners may be able to deduct a substantial portion of the purchase priceof eligible Chevy models, provided the vehicle is used for business purposes more than 50% of the time and titled in the company's name. Here are the key parameters and requirements for 2026:

• 2026 Deduction Limit: $2,560,000¹
  • Good on new and used equipment (as long as new to the buyer)
  • Applies to both purchases or leases

• 2026 Spending Cap: $4,090,000¹ -- This is 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)
  
  • Deduction begins to be reduced on a dollar-for-dollar basis -- this cap is what makes it a "small business tax incentive"
  • Complete phase-out at $6,650,000

• 2026 Bonus Depreciation: 100%¹
  • Bonus Depreciation 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 new and used vehicles

• For Your Purchase to Qualify, it Must:
  • Be purchased and put into use before Dec. 31, 2026¹
  • Be used for business purposes more than 50% of the time
  • Be titled in the company's name (not the company's owner's name)

Which Chevy Vehicles Qualify for Section 179?

Not all vehicles qualify equally under Section 179, and the deduction amount depends largely on the vehicle's Gross Vehicle Weight Rating (GVWR). Heavier-duty trucks and commercial vans typically qualify for more favorable treatment. Here's how the IRS generally categorizes vehicles for Section 179 purposes:

The new Chevy models eligible for Section 179 may include, but are not limited to:

• Silverado 1500
• Silverado EV
• Silverado HD
• Colorado
• Express Cargo Van
• Express Passenger Van
• Suburban
• Tahoe
• Traverse

Because weight ratings and configurations vary by trim and options, we recommend speaking with our team at Uvalde Chevrolet to confirm which models meet your business needs, and be sure to confirm with your accountant if your purchase meets Section 179 eligibility.

How Do I Use the Section 179 Tax Incentive?

Taking advantage of Section 179 starts with selecting a qualifying vehicle and ensuring it meets IRS requirements for business use and titling. Once you've identified the best Chevy near Devine for your operations, your tax professional will help you claim the deduction on your federal tax return for the year the vehicle is placed in service. 

Keep detailed records of business use, mileage and purchase documentation to support your deduction. Our Uvalde Chevrolet finance team is familiar with the questions business buyers often have and can help you explore both purchase and lease options that may qualify.