For many business owners, vehicles are essential tools — supporting daily operations, hauling equipment, and getting the job done. Section 179 of the IRS tax code allows eligible businesses to deduct a significant portion of the cost of qualifying vehicles when they are purchased and placed into service during the same tax year. For business owners investing in 2026, this can translate into meaningful tax savings and improved cash flow when upgrading or expanding a fleet.
At Phil Waterford's Manteca Ford in Manteca, CA, we work with local businesses across the Central Valley to help them explore Ford trucks, vans, and SUVs that may qualify for Section 179 deductions.
How Section 179 Works for 2026
Section 179 is designed to let businesses deduct the cost of qualifying property — including certain vehicles — in the year the property is put to use, instead of spreading that expense over several years through depreciation. For the 2026 tax year:
- The maximum Section 179 deduction for qualifying property placed into service in 2026 is $2,560,000.
- The deduction begins to phase out dollar-for-dollar once total eligible property placed into service during the same year exceeds about $4,090,000.
To take advantage of Section 179 in 2026, the vehicle must be purchased and placed into service by December 31, 2026, and must be used for business purposes more than 50% of the time during that tax year.
"Placed into service" means the vehicle is delivered, registered, and available for business use. It doesn't apply to vehicles that are simply ordered or reserved but not used during the year. If the vehicle is physically delivered and ready for work in 2026, it can be considered placed into service in that tax year.
Vehicle Eligibility and Business Use
Not all vehicles are treated the same under Section 179. Passenger cars and lighter SUVs often face separate first-year limits under the tax code. In contrast, heavier work vehicles—such as trucks and commercial vans with a Gross Vehicle Weight Rating (GVWR) above 6,000 pounds—are more likely to qualify for a larger first-year Section 179 deduction.
Here are some notable factors that affect eligibility:
- GVWR: Vehicles built on heavy-duty platforms with a GVWR over 6,000 pounds typically qualify for higher allowable deductions.
- Business Usage: To qualify, the vehicle must be used more than 50% for business in the same tax year it's placed into service.
- Placed into Service in 2026: The vehicle must be operational and available for business use by December 31, 2026.
Because tax rules and limits can change annually, it's prudent for buyers to consult a tax professional to confirm eligibility based on their specific situation.
Ford Vehicles That May Qualify for Section 179 in 2026
The Ford lineup includes several nameplates that are potential candidates for Section 179. Examples include:
- Ford F-Series Super Duty Trucks (such as F-250, F-350, F-450): These heavy-duty pickups generally exceed a GVWR of 6,000 pounds and are frequently the go-to nameplates for businesses of all sizes.
- Ford F-150 (when properly equipped): With select configurations and packages, certain F-150 models can meet the heavier GVWR thresholds that support larger Section 179 deductions.
- Commercial vans: Models like the Ford Transit and all-electric Ford E-Transit are popular choices for delivery, service, and trades businesses, offering flexible upfit options and comfortable cabins for long work days.
- Ford Transit® Cutaway/Chassis Cab: Designed for commercial upfits such as box trucks and service bodies, these platforms are frequently selected for business fleets.
- Ford E-Series Cutaway/Stripped Chassis: Often used in specialty applications, including ambulances, shuttle buses, and work trucks.
- Large SUVs: Including the Ford Expedition and some Explorer and Bronco configurations.
Why Section 179 Matters for Manteca Businesses
For business owners in Manteca and around the Central Valley, Section 179 can provide real tax-year relevance. By taking advantage of the current deduction limits on vehicles that are delivered, registered, and used for business in 2026, companies can potentially reduce taxable income and preserve capital for other investments. Whether you're expanding a fleet of service vans or upgrading to heavy-duty trucks, taking advantage of Section 179 works can help you make strategic decisions that align with your operational and financial goals.
Shop New Ford Vehicles in Manteca, CA
Reach out to Phil Waterford's Manteca Ford to learn more about the Ford lineup. We'll be happy to help you find the ideal vehicle for your business needs and financing solutions that best fit your budget. If you'd like a closer look at the latest models in our new Ford inventory, we welcome you to visit us in Manteca for a test drive. We'll be happy to show you around.