Business owners looking to make a smart year-end move can put the Section 179 tax deduction to work at GMC dealership near Saginaw, your family-owned Buick and GMC dealer in Bay City, MI. Family-owned and operated since 1946, our team helps small business owners and self-employed shoppers near Saginaw find qualifying vehicles that support their bottom line. This page is a general overview to help you understand how Section 179 works before you talk with a qualified tax professional.
What Is the Section 179 Tax Deduction?
Section 179 of the IRS tax code lets businesses deduct the cost of qualifying equipment, including certain vehicles, in the year they are purchased and put into use rather than depreciating that cost over time. It's designed as a true small-business incentive, rewarding companies that invest in the tools they need to grow. Below are the key figures and requirements that apply for the 2026 tax year.
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 GMC Trucks & SUVs Qualify for Section 179 in 2026
Not every vehicle qualifies the same way, and much of it comes down to gross vehicle weight rating (GVWR) and how the vehicle is used for business. Heavier vocational trucks and vans generally receive the most generous treatment, while lighter cars and SUVs fall under stricter IRS depreciation limits. Our team in Bay City can help you match the right work-ready Buick or GMC to your business needs.
New & Used Vocational Trucks and Vans: | Full Section 179 deduction available1 |
Heavy SUVs & Trucks (Over 6,000 lbs. GVW): | $32,000 maximum Section 1791 |
Cars, Light Trucks & SUVs (Under 6,000 lbs.): | Subject to IRS "luxury auto" depreciation limits (Section 280F)1 |
Why Buy Your Business Vehicle at Labadie Buick GMC
There's a reason drivers have trusted us for over 70 years; we treat every customer like a neighbor, not a number. With on-the-spot auto financing for new and used vehicles and a friendly, GM-Certified sales staff, we make it easy to put your tax strategy into action. You can browse our lineup and apply for financing before the year-end deadline.
Find a Qualifying Vehicle Near Saginaw
If you're ready to explore eligible work vehicles, our team is here to help you find the right fit and time your purchase before Dec. 31, 2026. Contact our team to get started and be sure to consult your tax professional about your specific situation. Contact us at Labadie Buick GMC in Bay City, MI today.
1Information accurate at the date of publishing. Refer to https://www.section179.org for the most up-to-date specifications.
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Labadie Buick GMC Section 179 FAQs
Can vehicles be deducted under Section 179?
Yes, qualifying vehicles can be deducted under Section 179, provided they meet the IRS requirements for business use and vehicle weight. The vehicle must be used for business purposes more than 50% of the time and titled in the company's name - not the owner's name.
Does Section 179 apply for used car purchases?
Section 179 does apply to used vehicles if the equipment is new to the buyer. If you're purchasing a new or used truck or van from Labadie Buick GMC, it may qualify for a Section 179 deduction when it meets the business-use and weight requirements outlined by the IRS.
Can Section 179 be claimed multiple times?
Section 179 can be claimed in multiple tax years, as it applies to eligible equipment purchased and put into use within each respective tax year. Each year's deduction is subject to that year's spending cap and deduction limit, so business owners should plan purchases accordingly and consult a qualified tax professional.
What is the Section 179 tax deduction limit?
For tax year 2026, the Section 179 deduction limit is $2,560,000, applying to new and used equipment that is new to the buyer - whether purchased or leased. This limit begins to phase out once total equipment spending reaches the 2026 spending cap, making it a true small-business tax incentive.
What is the 2026 Section 179 spending cap?
The 2026 Section 179 spending cap is $4,090,000, meaning the available deduction begins to reduce on a dollar-for-dollar basis once a business's total equipment spending exceeds that threshold, with a complete phase-out at $6,650,000. This structure is specifically designed to benefit small businesses, and our team is ready to help you find the right vehicle to put your tax strategy to work.