If you're a small business owner or self-employed professional, tax season may look a little different when you're driving a Section 179-eligible vehicle. Section 179 of the IRS tax code is designed with businesses like yours in mind, allowing you to potentially deduct the cost of a qualifying vehicle purchased and placed into service during the tax year.
At Casey Chrysler Dodge Jeep Ram of Springfield, our team has been helping New England drivers make smart automotive decisions since 1949 -- and that includes helping local business owners understand how the right vehicle can work harder for them come tax time. As always, we recommend consulting a qualified tax professional to determine how Section 179 applies to your specific situation.
2026 Section 179 Tax Deduction Overview & Limits
Section 179 is a federal tax incentive that allows businesses to deduct the full purchase price of qualifying equipment, including vehicles, in the year it was placed into service, rather than depreciating it over time. For tax year 2026, the deduction limits and bonus depreciation rates have been updated. Here's a quick overview of what small business owners in Windsor County and across Vermont should know heading into the 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 Jeep & Ram Vehicles Qualify for Section 179?
One of the most important factors in determining Section 179 eligibility for a vehicle is its Gross Vehicle Weight Rating (GVWR). Vehicles with a GVWR over 6,000 pounds generally qualify for more favorable deduction treatment, and the new Ram lineup include several models that meet or exceed that threshold. Whether you need a capable work truck, a heavy-duty hauler, or a rugged SUV for your business fleet in Springfield, there are options worth exploring.
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 models include, but are not limited to:
- Chrysler Pacifica
- Dodge Durango
- Jeep Grand Cherokee
- Jeep Gladiator
- Jeep Wrangler
- Wagoneer
- Grand Wagoneer
- Ram 1500
- Ram 2500
- Ram 3500
- Ram Chassis Cab
- ProMaster®
- ProMaster® EV
How Do I Use the Section 179 Tax Incentive?
Using Section 179 starts with purchasing and placing a qualifying vehicle into service before December 31, 2026. The vehicle must be used for business purposes more than 50% of the time and must be titled in your company's name -- not in your personal name as the business owner. Once those conditions are met, your tax professional can help you claim the appropriate deduction on your business tax return for the year in which the vehicle was placed into service.
We strongly encourage all customers to work with a licensed CPA or tax advisor to confirm eligibility and maximize the benefit for their specific business situation. This content is for informational purposes only and does not constitute tax advice.
Commercial Jeep & Ram Vehicles for Sale Near Me
Casey CDJR of Springfield has been a trusted cornerstone of the New England automotive community since 1949, and our tenured team of experienced professionals is here to guide you through every step of the vehicle buying process. Whether you're shopping from right here in Springfield or taking advantage of our nationwide car delivery service, we make it easy to get the right work vehicle for your business without the hassle.
Visit us on the lot, explore our inventory online, or give us a call -- our team is ready to help you find a qualifying Jeep or Ram before the December 31, 2026 deadline and put Section 179 to work for your business.
Read More:
1Information accurate at date of publishing. Refer to https://www.section179.org for most up-to-date specifications.
2026 Section 179 Tax Deduction FAQs
How does the Section 179 tax deduction work for small business owners?
Section 179 is a federal tax incentive that lets qualifying businesses deduct the full purchase price of an eligible vehicle in the year it was placed into service, rather than depreciating it over several years. For 2026, the deduction limit is $2,560,000 with a spending cap of $4,090,000, making it a true small-business incentive. Consult a licensed CPA or tax advisor to confirm how this applies to your specific situation.
What Jeep and Ram vehicles qualify for the Section 179 deduction?
Vehicles with a Gross Vehicle Weight Rating over 6,000 pounds generally qualify for more favorable Section 179 savings. Eligible models may include the Ram 1500, Ram 2500, Ram 3500, Jeep Grand Cherokee, Jeep Gladiator, Wagoneer, Grand Wagoneer and ProMaster®, among others. Visit our Springfield Ram dealer to explore qualifying inventory and find the right fit for your business fleet.
Can I claim Section 179 on a used Ram?
Yes -- Section 179 applies to both new and used vehicles, as long as the vehicle is new to the buyer and placed into service before December 31, 2026. The 2026 bonus depreciation rate of 100% also applies to both new and used qualifying assets. A qualified tax professional can help you determine whether a specific pre-owned Jeep or Ram from our Springfield car dealer meets all eligibility requirements.
Are there specific requirements my business must meet to claim Section 179?
To claim the Section 179 deduction, the vehicle must be used for business purposes more than 50% of the time and must be titled in the company's name, not the business owner's personal name. The vehicle also must be purchased and placed into service before December 31, 2026. Casey Chrysler Dodge Jeep Ram of Springfield strongly encourages all customers to work with a licensed CPA or tax advisor to confirm eligibility before purchasing.