Section 179 deduction

By Fernandez, truck dispatcher · Updated October 29, 2026

The Section 179 deduction lets a business elect to deduct the cost of qualifying equipment, such as a truck, in the year it is placed in service instead of depreciating it over several years, up to a yearly limit. For a truck owner it can move a large deduction into the year you buy.

In practice: Section 179 on a truck

EXAMPLE: used tractor bought in 2026	Amount
Truck price, 100% business use	$90,000
Section 179 elected	$90,000, if business income allows
Regular MACRS instead, 3-year property, year one	$29,997 (33.33%)

EXAMPLE figures. The MACRS line uses the 3-year half-year table in IRS Publication 946, which classes over-the-road tractor units as 3-year property.

Three rules matter most:

Placed in service. The truck must be ready and available for use in your business in the tax year, not just ordered.
Business income limit. The Section 179 deduction cannot be more than your taxable income from the active conduct of a business that year (26 U.S.C. 179); any excess carries forward.
Dollar limits. $2,560,000 for 2026, phased out above $4,090,000 of purchases.

A big first-year deduction also means less to deduct later, and selling the truck can bring part of it back as taxable income. Bigger deductions never make a payment easier to carry.

Work out a schedule with the truck depreciation calculator. New trucks also carry the 12% federal excise tax, and if you refinance later, see refinance a semi truck loan.

Related terms

Bonus depreciation, TRAC lease, residual value. See the full trucking glossary.

A deduction helps at tax time; loads pay the bills every week. Our owner-operator dispatch service books freight that covers the truck, and you approve each load.

Section 179 deduction questions

What is the Section 179 limit for 2026?

For tax year 2026 the Section 179 limit is $2,560,000, reduced dollar for dollar once qualifying purchases pass $4,090,000, under Rev. Proc. 2025-32 as reflected in IRS guidance. A single owner-operator truck sits far below both. Confirm current figures with IRS Publication 946 and a tax professional.

Is Section 179 the same as bonus depreciation?

No. Both can let you deduct much of a truck's cost in year one, but they follow different rules. Section 179 is an election limited by a dollar cap and your business income; bonus depreciation has no income limit. For property acquired after January 19, 2025, current law allows 100% bonus depreciation. A tax professional can tell you which fits.

General information about financing, leasing and tax, not financial, tax or legal advice. RigCaptain is not a lender, broker, dealer or insurer. Read every contract and ask a tax professional or attorney about your own deal.