Section 179 Vehicle Deduction Calculator 2026
Section 179 expensing on vehicles is heavily restricted by 'luxury auto' caps for cars (~$20,400 first year 2026). But vehicles over 6,000 lbs Gross Vehicle Weight Rating (GVWR) escape the cap — SUVs and trucks can deduct $30,500 in 2026, plus 100% bonus depreciation on excess (OBBB permanent). Business-use percentage must be tracked carefully.
Luxury Auto Cap
§280F(d)(7) caps first-year depreciation on light autos: $20,400 in 2026 with bonus depreciation (was $20,200 in 2025). $12,400 without bonus. Cap is per vehicle, indexed for inflation. Applies to vehicles ≤6,000 lbs GVWR. Heavy vehicles escape entirely — major incentive for business owners to choose SUV/truck.
6,000-Pound SUV Rule
Vehicles with GVWR over 6,000 lbs escape luxury auto cap. §179 limit: $30,500 (2026, indexed). Excess eligible for 100% bonus depreciation (permanent under OBBB). Practical effect: $80,000 SUV with 100% business use = $30,500 §179 + $49,500 bonus = $80,000 fully expensed year-1. Common qualifying SUVs: Chevy Suburban, Ford Expedition, Toyota Sequoia, Land Rover Range Rover, Tesla Model X.
Business Use Tracking
Must use vehicle >50% for business to qualify for §179. Track miles contemporaneously — paper log, MileIQ app, etc. Personal commuting NOT business use (going to/from regular office). Personal errands NOT business use. Drop below 50% in any future year triggers §280F recapture: re-add prior §179 deduction back to income. Maintain 70%+ buffer to avoid trigger.
Source: IRC §179, §168(k), §280F(d)(7), Rev. Proc. 2024-08 (luxury auto limits 2026). Last updated: May 2026.