The Year-End Window Is Open

Every fall, fleet owners ask the same question. Should we buy that next truck now or wait until January? For many small businesses, the tax rules point to now. However, the details matter, and the rules changed recently.

This article explains the basics. It does not replace advice from your accountant. Still, knowing the rules helps you ask better questions before you sign.

Section 179 Limits for 2026

Section 179 lets a business deduct the cost of qualifying equipment in the year it starts using it. In other words, you do not have to spread the deduction over several years. According to IRS Publication 946, the maximum Section 179 deduction for 2026 is $2,560,000. That limit starts to shrink once a business places more than $4,090,000 of this type of property in service.

Most small fleets will never hit those caps. As a result, a business buying a few trucks or vans can often deduct the full cost.

Bonus Depreciation Is Back at 100%

There is a second tool, too. Bonus depreciation also lets businesses write off equipment costs in the first year. The IRS reports that the One, Big, Beautiful Bill made this deduction a permanent 100%. It applies to eligible property acquired after Jan. 19, 2025. Your tax pro can help you decide how to combine the two tools.

Know the Truck and SUV Rules

Not every vehicle gets the same treatment. Publication 946 caps the Section 179 deduction for heavy SUVs at $32,000 for 2026. This cap covers passenger vehicles rated between 6,000 and 14,000 pounds gross vehicle weight.

Fortunately, many work vehicles fall outside that cap. For example, the cap skips vehicles with a cargo area at least 6 feet long. That cargo area must not be easy to reach from the cab. Similarly, it skips vehicles that seat more than nine people behind the driver. Many cargo vans also qualify for an exception. To qualify, a van can have no seats behind the driver. Also, no part of its body can stick out more than 30 inches ahead of the windshield.

Timing and Business Use Matter

Buying a truck is not enough by itself. The IRS says you place property in service when it is ready and available for a specific use. So a truck stuck at the upfitter on Dec. 31 may not count for this year. For that reason, ask your dealer about delivery dates before you commit.

Business use matters as well. Publication 946 allows Section 179 only if business use tops 50% in the first year. Therefore, keep good mileage records from day one.

Talk to Your Tax Pro Before You Sign

Finally, bring these numbers to your accountant this month. Upfits can add time to delivery, so start early. That way, you can order, upfit, and put the truck to work before the year ends.

Also read: Buying vs. Leasing Work Trucks: A Side-by-Side Look