GMC Section 179 Tax Deduction in Newton, KS

2026 Section 179 Tax Deduction Overview & Limits

Section 179 allows qualifying businesses to deduct the purchase price of eligible equipment and vehicles in the year they're placed in service, rather than depreciating them over time. For tax year 2026, this incentive remains a powerful tool for Valley Center business owners investing in commercial vehicles.

To qualify, your new GMC must be purchased and put into service by December 31, 2026, used for business purposes more than 50% of the time, and titled in your company's name -- not your personal name. Both new and used vehicles may qualify, as well as leased equipment, making this deduction accessible whether you're buying or leasing your next GMC truck, SUV or van.

• 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)