If you own a small business or work for yourself in the Baraboo area, the Section 179 tax deduction for tax year 2026 may help you invest in the vehicles that keep your operation moving. Our family-owned team at Don Larson Chevrolet has served Wisconsin business owners for generations, and we're here to walk you through the business-use Chevy trucks and SUVs that could fit your plans.
This content is for informational purposes only, so please consult a qualified tax professional to confirm how Section 179 applies to your specific situation.
2026 Section 179 Tax Deduction Overview & Limits
Section 179 of the IRS tax code lets qualifying businesses deduct the cost of eligible equipment, including certain business-use vehicles, in the year they are purchased and placed into service. It's designed as a true small-business incentive that rewards Baraboo and Reedsburg area 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)
Which Chevy Vehicles Qualify for Section 179?
How a vehicle qualifies under Section 179 depends largely on its gross vehicle weight rating (GVWR) and how it's used for your business. In general terms, heavier work-focused vehicles receive more favorable treatment, while lighter passenger vehicles are subject to stricter limits.
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
Our new Chevy lineup includes a range of models that may qualify, which may include, but are not limited to, the Silverado 1500, Silverado EV, Silverado HD, Colorado, Express Cargo Van, Express Passenger Van, Suburban, Tahoe and Traverse. Our team can help you match the right vehicle to the Section 179 category that fits your business plans.
How Do I Use the Section 179 Tax Incentive?
Taking advantage of Section 179 starts with choosing a qualifying Chevy and putting 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 Chevy finance center can help you select an eligible vehicle, though your accountant or tax professional should always confirm the exact deduction you can claim.
Commercial Chevy Vehicles for Sale Near Me
When Baraboo and Reedsburg area business owners want a dealership that treats them right, they turn to our team. As a family-owned dealer named South Central Wisconsin's Best of the Best in 2023, we pride ourselves on a quick, transparent sales experience with no gimmicks or shady tactics. Long after the sale, our service team keeps your work vehicle ready for the road with loaner vehicles, shuttle service and convenient pick-up and drop-off options.
Visit us today or contact our team to explore qualifying Chevy trucks, vans and SUVs and put Section 179 to work for your business before the December 31, 2026 deadline!
1 Information accurate at date of publishing. Refer to https://www.section179.org for most up-to-date specifications.
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Chevrolet Section 179 Tax Deduction FAQs
Can vehicles be deducted under Section 179?
Yes, Section 179 lets qualifying businesses deduct the cost of certain business-use Chevy trucks and SUVs in the year they are purchased and placed into service. To qualify at our Baraboo, WI dealership, the vehicle must be used for business more than 50% of the time and titled in the company's name. Reach out to our Chevy finance team to explore eligible models before the December 31, 2026 deadline.
Does Section 179 apply for used car purchases?
Yes, Section 179 is good on new and used equipment as long as the vehicle is new to the buyer. Our team can help Baraboo and Reedsburg area business owners find a qualifying new or used Chevy, though a qualified tax professional should confirm how the deduction applies to your situation.
Can Section 179 be claimed multiple times?
Section 179 is generally applied to qualifying equipment in the year it's purchased and placed into service, so new business purchases may be deducted in their respective tax years. Because every situation differs, we recommend consulting a qualified tax professional to confirm how Section 179 applies to your business.
What is the Section 179 tax deduction limit?
For 2026, the Section 179 deduction limit is $2,560,000, which applies to new and used equipment that is purchased or leased. Heavy SUVs and trucks over 6,000 lbs. GVW carry a $32,000 maximum, and this content is for informational purposes only, so please consult a tax professional.
What is the 2026 Section 179 spending cap?
The 2026 spending cap is $4,090,000, the maximum that can be spent on equipment before the deduction begins to reduce on a dollar-for-dollar basis, with a complete phase-out at $6,650,000. Visit us in Baraboo, WI to put Section 179 to work for your business before the December 31, 2026 deadline.