January 2026 Vol 9 Issue 1

How Small Businesses Can Maximize Section  179 Savings in 2026

Know the 2026 Deduction Limit

• The maximum Section 179 deduction for tax year 2026 is approximately $2.56 million. [spitzer.com]

• Deduction begins to phase out once total qualifying purchases exceed around $4.09 million.
• [spitzer.com]

Understand What Qualifies

• Eligible assets typically include machinery, equipment, software, and certain vehicles placed in service during the tax year. [jupid.com}

• Vehicles have special rules:

• • Light vehicles (<6,000 lbs GVWR): much lower first‑year caps (generally in the low $20,000s). [mitchlevincpa.com]
• Heavy SUVs/pickups (6,001–14,000 lbs): higher cap, often around $31,300. [mitchlevincpa.com]

• Commercial trucks/vans (>14,000 lbs): may qualify for full Section 179 expensing if business‑use thresholds are met. [spitzer.com]

Satisfy the Business‑Use Requirement

• Assets must be used more than 50% for business to qualify. Keep accurate mileage logs or usage documentation. [mitchlevincpa.com]