Chevy Section 179 Tax Deduction in Daphne, AL

If you own a small business or work for yourself, the Section 179 tax deduction for tax year 2026 may be one of the smartest ways to invest in a capable new work vehicle. Our family-owned and family-operated team at Terry Thompson Chevrolet in Daphne helps local business owners understand how qualifying Chevy trucks, vans and SUVs may fit into their vehicle tax strategy.

The information below is provided for informational purposes only, and you should always consult a qualified tax professional to confirm how Section 179 applies to your specific situation.

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Chevrolet Silverado 1500

2026 Section 179 Tax Deduction Overview & Limits

Section 179 of the IRS tax code lets eligible businesses deduct the cost of qualifying equipment, including certain business-use vehicles, in the year they're purchased and placed into service. It's designed as a true small-business incentive that rewards companies for investing in the tools and vehicles they need to grow. Review the general guidelines below, then talk with your tax advisor before making a purchase.

2026 Deduction Limit: $2,560,0001

  • Good on new and used equipment (as long as new to the buyer)
  • Purchased or leased

2026 Spending Cap: $4,090,0001

  • This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar-for-dollar basis (making it a true small-business incentive)
  • Deduction begins to be reduced on a dollar-for-dollar basis -- this cap is what makes it a "small business tax incentive"
  • Complete phase-out at $6,650,000

2026 Bonus Depreciation: 100%1

  • Defined as: a tax incentive that allows a business to immediately deduct a large percentage of the purchase price of eligible assets
  • Generally taken after the Spending Cap is reached
  • Applies to new and used
  • Must be purchased and put into use before Dec. 31, 20261
  • Must be used for business purposes more than 50% of the time
  • Must be titled in the company's name (not the company's owner's name)
Chevrolet Silverado Hd

Which Chevy Vehicles Qualify for Section 179?

A vehicle's eligibility for Section 179 depends largely on its Gross Vehicle Weight Rating (GVWR) and how it's used for your business. In general terms, heavier work-oriented vehicles offer more favorable treatment, while lighter passenger vehicles are subject to stricter limits.

  • New & Used Vocational Trucks and Vans: Full Section 179 deduction available1
  • Heavy SUVs & Trucks (Over 6,000 lbs. GVW) (excludes some pickups/vans): $32,000 maximum Section 1791
  • Cars, Light Trucks & SUVs (Under 6,000 lbs.): Subject to IRS "luxury auto" depreciation limits (Section 280F)1

No matter which category fits your operation, our team can help you compare new Chevy vehicles that may line up with your Section 179 plans. We carry a strong selection of both new and used Chevy models, giving you flexibility in how you build your business fleet.

How Do I Use the Section 179 Tax Incentive?

Taking advantage of Section 179 starts with choosing a qualifying Chevy vehicle and placing it into business use before December 31, 2026. You'll generally need to document that the vehicle is used for business purposes more than 50% of the time and that it's titled in your company's name rather than a personal name.

Our experienced, long-tenured team can guide you through selecting an eligible Chevy truck, van or SUV, and our Chevy finance center can help you explore purchase and lease options. Your accountant or tax professional should always confirm the exact deduction you can claim, and the key is to act before year-end so the vehicle is both purchased and in use within the 2026 tax year.

Person signing car purchase agreement with keys and toy car on desk

Terry Thompson Chevrolet Section 179 Tax Deduction FAQs

Can vehicles be deducted under Section 179?

Yes, Section 179 lets eligible businesses deduct the cost of qualifying business-use vehicles in the year they're purchased and placed into service. Our team at Terry Thompson Chevrolet in Daphne, AL, can help you explore qualifying Chevy trucks, vans and SUVs, though you should always consult a qualified tax professional. Reach out today to find a business-ready Chevy before the December 31, 2026 deadline.

Does Section 179 apply for used car purchases?

Section 179 applies to both new and used equipment, as long as the vehicle is new to the buyer and placed into business use. The 2026 bonus depreciation of 100% also applies to new and used qualifying assets. Visit Terry Thompson Chevrolet near Mobile to browse both new and used options.

Can Section 179 be claimed multiple times?

Section 179 is applied to qualifying equipment purchased and placed into service within a given tax year, so a vehicle must be purchased and put into use before Dec. 31, 2026 to count for that year. It must also be used for business purposes more than 50% of the time and titled in the company's name. A qualified tax professional can confirm how it applies to your specific situation.

What is the Section 179 tax deduction limit?

For 2026, the Section 179 deduction limit is $2,560,000, good on new and used equipment that is new to the buyer, whether purchased or leased. Businesses may also take advantage of 100% bonus depreciation on eligible assets. The experienced team at Terry Thompson Chevrolet in Daphne, AL can guide you toward qualifying inventory.

What is the 2026 Section 179 spending cap?

The 2026 spending cap is $4,090,000, which is the maximum amount that can be spent on equipment before the Section 179 deduction begins to be reduced on a dollar-for-dollar basis, with complete phase-out at $6,650,000. This cap is what makes it a true small-business incentive. Contact Terry Thompson Chevrolet near Mobile to put a capable Chevy to work for your business today.