Ford Section 179 Tax Deduction in Litchfield, IL

If you own a business or are self-employed, the Section 179 tax deduction may be one of the smartest ways to invest in a new work vehicle for the 2026 tax year. Our family-owned dealer, Victory Lane Ford, helps local business owners understand how qualifying Ford trucks, vans and SUVs may fit into their vehicle tax strategy, with a convenient, seamless process from start to finish.

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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2026 Section 179 Tax Deduction Overview & Limits

Section 179 of the IRS tax code lets eligible businesses deduct the purchase price of qualifying equipment, including certain new Ford vehicles, put into service during the tax year. 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 a tax advisor about your situation 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)

Which Ford 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.

Ford Super Duty

Full Section 179 deduction available 1

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

Eligible Ford vehicles generally include qualifying work-ready trucks, vans and SUVs, and our commercial team can help you match the right option to the Section 179 category that fits your plans:

  • F-150
  • Super Duty®
  • Transit Cargo Van
  • Transit Passenger Wagon
  • Explorer
  • Expedition
  • Expedition MAX

How Do I Use the Section 179 Tax Incentive?

Taking advantage of Section 179 starts with choosing a qualifying Ford vehicle and putting it into business use before the end of the 2026 tax year. 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.1

Our Ford finance team can guide you through selecting an eligible commercial vehicle and help you apply for financing, and we can even bring the shopping experience to you with online car-buying and new vehicle delivery, though your accountant or tax professional should always confirm the exact deduction you can claim.

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

2026 Ford Section 179 Tax Deduction FAQs

Can vehicles be deducted under Section 179?

Yes, qualifying new Ford trucks, vans and SUVs put into business use can be deducted, with eligibility depending largely on Gross Vehicle Weight Rating (GVWR) and business use. The vehicle must be used for business more than 50% of the time and titled in the company's name. Visit Victory Lane Ford in Litchfield, IL to explore qualifying commercial models before the December 31, 2026 deadline.

Does Section 179 apply for used car purchases?

Yes, Section 179 is good on both new and used equipment as long as the vehicle is new to the buyer. The 2026 100% bonus depreciation also applies to new and used qualifying assets. Consult a qualified tax professional to confirm how this applies to your situation.

Can Section 179 be claimed multiple times?

Section 179 can generally be used each tax year for qualifying equipment placed into service that year, subject to the annual deduction limit and spending cap. At Victory Lane Ford in Litchfield, IL, our family-owned commercial team can help you plan purchases, but your tax advisor should confirm how it applies across tax years.

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 purchased or leased and placed into service before December 31, 2026. Heavy SUVs and trucks over 6,000 lbs. GVW carry a $32,000 maximum, while lighter vehicles fall under IRS luxury auto limits. Contact Victory Lane Ford to find a qualifying work vehicle today.

What is the 2026 Section 179 spending cap?

The 2026 spending cap is $4,090,000, the maximum amount that can be spent on equipment before the deduction begins to reduce on a dollar-for-dollar basis, with complete phase-out at $6,650,000. This cap is what makes Section 179 a true small-business incentive. Always consult a qualified tax professional for your specific situation.