Tax Deductions for Farmers; Small Businesses

How Does Section 179 Work in 2026?

Normally, businesses recover the cost of major equipment purchases through depreciation over several years. Section 179 allows them to deduct a larger amount upfront, potentially reducing taxable income during the year the equipment is put to work.

For the 2026 tax year, the overall Section 179 deduction limit is $2,560,000. The deduction begins to phase out once a business purchases more than $4,090,000 in eligible property. These are business-wide limits, not the amount that can automatically be deducted for an individual vehicle.

A vehicle must be used for business more than 50% of the time and placed into service during the tax year. To claim a deduction for 2026, the vehicle needs to be purchased and available for business use by December 31. Ordering a truck or making a deposit before the deadline isn't sufficient.

Tax Deductions for Farmers

Farming places substantial demands on trucks and other work vehicles. From hauling supplies and towing equipment to transporting feed, tools, and materials, a capable truck can be an essential part of an agricultural operation. Farmers can generally use Section 179 under the same business-use requirements as other business owners.

As harvest and other seasonal fieldwork wind down, many farmers begin evaluating equipment needs for the coming year. If you are already planning on replacing an older pickup or adding another work truck to your fleet, it's important to complete the purchase and put the vehicle into service before year-end to get the tax advantage for 2026.

Which Chevrolet Vehicles May Qualify?

Vehicle weight and configuration play an important role in determining the available deduction. Trucks and commercial vehicles with a Gross Vehicle Weight Rating (GVWR) above 6,000 pounds can receive more favorable treatment than lighter passenger vehicles.

• Chevrolet Silverado HD: Heavy-duty pickups, like the Silverado 2500 HD and Silverado 3500 HD, are commonly used for demanding towing, hauling, and commercial applications.
• Chevrolet Silverado 1500: Certain configurations of this full-size light-duty pickup exceed 6,000 pounds GVWR.
• Chevrolet Express: Commercial vans and cutaway configurations used for deliveries, equipment transport, and specialized upfits often qualify for favorable Section 179 treatment.
• Chevrolet Tahoe and Suburban: These full-size SUVs may qualify for deductions under the rules for heavier passenger vehicles.¹

^{1For 2026, certain SUVs with a GVWR above 6,000 pounds are subject to a special Section 179 limit of $32,000. Bonus depreciation may provide an additional first-year deduction after Section 179 is applied.}

Can Used Trucks Qualify for Section 179?

Yes. Section 179 isn't limited to brand-new vehicles. A used truck or van purchased for your business can also be eligible, provided it meets the requirements. A pre-owned work truck can still offer the capability you need for your Monticello or Frankfort business at a lower purchase price while also providing an opportunity for a first-year deduction.

Because tax circumstances vary, it's important to consult a qualified tax professional to determine which deductions are available for your specific purchase.