Drive Away With Tax Savings: Section 179 Deductions for Your New Ford Vehicle
If you're eyeing a new Ford vehicle for your business, now is the time to make your move. Section 179 lets qualifying businesses in the Annapolis, Maryland area deduct the full purchase price of a qualifying vehicle in the year it's placed in service, rather than depreciating it over several years. Whether you need a powerful work truck or a versatile commercial van, there are significant tax advantages to be had with a Ford vehicle.
The figures on this page reflect the 2026 tax year. Section 179 limits are set by federal law and adjusted for inflation each year, so treat these as a starting point for a conversation with your tax professional, not tax advice.
A Comprehensive Guide to Section 179
Businesses in the Annapolis, Maryland area can take advantage of the Section 179 deduction, which permits them to deduct the entire purchase price of qualifying vehicles in the year they're placed into service, rather than spreading the deduction out over multiple years. This applies to both new and used vehicles, within a specified dollar threshold. For the 2026 tax year, businesses can expense up to $2,560,000 in equipment and vehicle purchases, providing substantial tax savings.
Deduction Limit
For the 2026 tax year, the Section 179 deduction limit is set at $2,560,000. That means businesses can deduct up to this amount in qualifying equipment and vehicle purchases made on our lot.
Spending Cap
There's also a spending cap tied to Section 179. For the 2026 tax year, businesses can spend up to $4,090,000 on equipment before the deduction begins phasing out dollar-for-dollar, and the deduction disappears entirely once purchases reach $6,650,000.
What Is the Section 179 Deduction
Section 179 is a tax provision established by the IRS to encourage businesses to invest in essential assets by providing significant tax benefits. It allows businesses to subtract the entire purchase cost of eligible equipment and certain vehicles from their taxable income in the year the assets are placed in service, rather than depreciating that cost over several years.
The goal of Section 179 is to encourage businesses to invest in themselves. By allowing a full upfront deduction on qualifying assets, it frees up capital that can be reinvested in the business for expansion, equipment, or operational improvements.
Qualifying assets include tangible personal property used for business purposes, such as machinery, equipment, and vehicles. To be eligible, the asset generally must be purchased or financed, and placed in service, within the tax year, and used for business purposes more than 50% of the time. A standard vehicle lease works differently: instead of a Section 179 deduction, the business-use portion of the lease payments is typically deducted each year.
When your business purchases a qualifying vehicle, you can deduct its full purchase price from your taxable income for the year it's placed in service, which can meaningfully improve cash flow. Businesses claim the deduction using IRS Form 4562, and should consult a tax professional to confirm eligibility and stay compliant with current IRS rules.
The deduction phases out on a dollar-for-dollar basis once a business's qualifying purchases exceed $4,090,000 for 2026. Qualifying vehicle categories include:
- Passenger vehicles
- Heavy-duty SUVs
- Trucks
- Vans
Each vehicle must be used at least 50% of the time for business purposes to qualify, and the deduction is limited to that percentage of business use.
The exact dollar limit depends on the vehicle's weight class. Passenger vehicles and other vehicles under 6,000 lbs GVWR fall under the IRS's "luxury auto" depreciation limits: for 2026, that's a first-year limit of $20,300 when bonus depreciation applies, or $12,300 without it, reduced proportionally for anything less than 100% business use. Heavier SUVs and trucks between 6,001 and 14,000 lbs GVWR have a 2026 Section 179 cap of $32,000, with any remaining cost basis above that potentially eligible for bonus depreciation. Vehicles over 14,000 lbs GVWR aren't subject to a special vehicle cap and are eligible up to the full annual Section 179 limit.
Businesses across construction, landscaping, delivery services, healthcare, agriculture, and retail can all benefit from the Section 179 deduction on qualifying equipment and vehicles used for business, provided they stay within the annual spending cap and meet the business-use requirement.
By deducting the cost of trucks, vans, and other qualifying vehicles up front, businesses can reduce their tax liability and improve cash flow, freeing up capital for reinvestment and growth.
Difference Between Section 179 and Bonus Depreciation
While both Section 179 and bonus depreciation offer tax benefits for businesses, there are key differences between the two. Section 179 lets businesses deduct the full purchase price of qualifying equipment and vehicles immediately, up to the annual limits above, and applies to both new and used property. Bonus depreciation, under current law, allows 100% first-year depreciation on qualifying new and used property placed in service after January 19, 2025, and is typically applied to any cost basis remaining after Section 179 is taken. Most businesses use the two together rather than choosing one or the other.
Take Advantage of This Opportunity With Koons Ford of Annapolis Today
Section 179 offers businesses in the Annapolis, Maryland area a valuable tax incentive to invest in the vehicles they need. If you're considering a new Ford truck, van, or SUV for your business, now is the time to act on these tax savings. Browse our commercial trucks and vans or our full new Ford inventory, or contact our team to talk through timing with your tax professional before the tax year closes.
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Koons Ford Of Annapolis
2540 Riva Road
Annapolis, MD 21401
- Sales: (443) 214-2905
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Disclaimer
This page is provided for general informational purposes only and does not constitute tax, legal, or accounting advice. Section 179 and bonus depreciation rules depend on your specific business circumstances and are subject to change by federal law. Koons Ford of Annapolis does not provide tax advice; consult your own qualified tax professional before making a purchase decision based on anticipated tax savings. Vehicle availability is subject to prior sale, and pricing and specifications are subject to change without notice.