Tax savings
Section 179: write off your next truck in 2026
Section 179 lets your business deduct the full price of qualifying equipment the year you put it to work — up to $2.56 million, new or used. Finance the equipment and you can still take the deduction this year.
The 2026 numbers
Under the One Big Beautiful Bill Act, the limits jumped and 100% bonus depreciation is back. Here's what applies to equipment you place in service in 2026.
$2.56M
2026 deduction limit
Maximum you can expense in one year
$4.09M
Phase-out begins
Reduces dollar-for-dollar above this
100%
Bonus depreciation
Restored for new and used equipment
Dec 31
Placed-in-service deadline
In use by year-end to deduct this year
Finance it — and still deduct it
Here's the move most business owners don't realize they can make: you don't have to pay cash to take the deduction. Finance a qualifying truck or machine, put a fraction down, and you can still write off the full purchase price this tax year.
That means the deduction can exceed what you've actually paid out so far — keeping cash in your business while still lowering your taxable income. Section 179 is applied first, and any remaining cost can be covered by 100% bonus depreciation.
A simplified example
- Used dump truck financed
- $120,000
- Down payment
- $12,000
- Potential Section 179 deduction
- up to $120,000
- At a 24% tax rate, est. tax savings
- ~$28,800
Illustrative only. The deduction can't exceed your business taxable income for the year, and your actual savings depend on your rate, entity type, and situation. Confirm with your CPA.
How to put it to work before year-end
1
Pick the equipment
Choose the truck or machine you need, new or used, from a dealer or private seller. Order early — it has to be in service by December 31.
2
Finance it fast
Apply with a quick credit-based pre-qualification and get a decision in as little as 24 hours, so the equipment can be delivered and working before the deadline.
3
Deduct it with your CPA
Your accountant claims the deduction on Form 4562 at tax time. Keep the invoice and proof the equipment was placed in service this year.
Not tax advice. Avanti Equipment Finance is not a tax advisor or CPA. Section 179 has income limits and rules that vary by business type and equipment. This page is general information — confirm what applies to you with a qualified tax professional before making a purchase decision.
Section 179 questions
Can I deduct equipment I financed?
Yes. This is the part most owners miss: when you finance qualifying equipment, you can still deduct the full purchase price under Section 179 in the year it's placed in service — even though you're paying for it over time. You put a fraction down and may write off the whole amount this tax year, subject to the income limit. Confirm the specifics with your CPA.
What is the Section 179 limit for 2026?
For tax year 2026, businesses can deduct up to $2,560,000 in qualifying equipment. The deduction begins to phase out dollar-for-dollar once total qualifying purchases exceed $4,090,000, and is fully phased out at $6,650,000.
Do used trucks and equipment qualify?
Yes. Section 179 and the restored 100% bonus depreciation both apply to new and used equipment, as long as it's new to your business and bought in an arm's-length transaction. A used dump truck, wrecker, or excavator can qualify the same as a new one.
Does this apply to tow, dump, and construction equipment?
Yes. Heavy work trucks and equipment generally qualify for the full deduction and are not subject to the passenger-vehicle and SUV caps that limit lighter vehicles. Tow trucks, dump trucks, vocational trucks, trailers, and construction machines are all typically eligible. Your CPA can confirm based on the specific unit and its use.
What's the deadline to take the deduction?
The equipment must be purchased and placed in service — delivered and actually in use in your business — by December 31 of the tax year. Financing closes fast, but ordering early matters, especially late in the year.
Beat the year-end deadline
Get the equipment financed and in service before December 31. Fast credit-based pre-qualification, decisions in as little as 24 hours.