Section 179 & Bonus Depreciation Calculator (Vehicles & Heavy Equipment)

Estimate your first-year write-off and tax savings on business vehicles, trucks, and equipment under Section 179 and 100% bonus depreciation for 2026 (OBBBA). Handles the heavy-SUV cap and passenger-auto luxury limits. Instant, private, fully validated.

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Section 179 Calculator

First-year depreciation & tax savings (2026)

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First-Year Tax Savings
Section 179 Deduction
Bonus Depreciation (100%)
Total First-Year Deduction
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Deduction Breakdown

How Section 179 & Bonus Depreciation Work in 2026

Section 179 lets a business deduct the full purchase price of qualifying equipment and vehicles in the year you place them in service, instead of depreciating over 5–7 years. For 2026 the One Big Beautiful Bill Act (OBBBA) raised the Section 179 limit to $2,500,000 (phasing out dollar-for-dollar once purchases exceed $4,000,000) and made 100% bonus depreciation permanent for assets placed in service after January 19, 2025.

The big catch is vehicles. A heavy SUV (GVWR 6,000–14,000 lb) caps the Section 179 portion at about $31,300 — but 100% bonus depreciation then covers the rest, so you can still write off the full business-use cost in year one. A passenger auto under 6,000 lb is hit by the "luxury auto" limits, capping your first-year deduction near $20,400, with the remainder spread over later years. Equipment, machinery, and heavy trucks/cargo vans have no SUV cap.

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Equipment = Full Write-Off

Machinery and qualifying trucks/vans can be deducted 100% in year one via §179 + bonus, up to the limits.

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Heavy SUV Cap

§179 is capped (~$31,300) for 6,000–14,000 lb SUVs, but 100% bonus covers the remainder.

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Luxury Auto Limit

Cars under 6,000 lb GVWR are capped near $20,400 the first year — the rest depreciates over time.

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Place in Service

The asset must be bought and actually in use by Dec 31 — not just ordered or paid for.

Section 179 & the 2026 Vehicle Tax Write-Off, Explained for U.S. Businesses

The Section 179 deduction is one of the most powerful year-end tax moves for American small businesses — and searches for the vehicle tax write-off, the 6,000 lb GVWR vehicle list, and bonus depreciation 2026 spike every fourth quarter. Thanks to the 2025 One Big Beautiful Bill Act, businesses can now expense up to $2.5 million of equipment and write off 100% of qualifying purchases in year one. This Section 179 calculator shows your first-year deduction and the actual tax it saves on trucks, vans, SUVs, machinery, and equipment placed in service in 2026.

Heavy SUVs, Work Trucks & the Luxury-Auto Limit

The big question for U.S. contractors, realtors, and rideshare drivers is whether a vehicle qualifies. Heavy SUVs over 6,000 lb GVWR (Suburban, Tahoe, Escalade, G-Wagon) and qualifying work trucks can be fully written off via Section 179 plus 100% bonus depreciation, while passenger cars under 6,000 lb are capped near $20,400 the first year. Enter your cost, business-use percentage, and tax bracket to see exactly where you land.

How to Use the Section 179 Calculator

  1. Enter the cost of the equipment or vehicle.
  2. Choose the asset type — equipment, heavy truck/van, heavy SUV (6,000+ lb GVWR), or passenger auto.
  3. Set your business-use percentage (must exceed 50% for vehicles).
  4. Enter your marginal tax rate to see the real first-year tax savings.

Worked Example

A general contractor buys an $80,000 work truck used 100% for business. Because it qualifies for Section 179 plus 100% bonus depreciation, the full $80,000 is written off in year one. At a combined 32% tax rate, that is about $25,600 in first-year tax savings. A $70,000 passenger sedan, by contrast, would be capped near $20,400 the first year under the luxury-auto rules.

Who Uses This Calculator

Small business owners, contractors, real-estate agents, landscapers, truckers, farmers, medical and dental practices, and the self-employed buying business vehicles, machinery, or equipment in the United States before the December 31 placed-in-service deadline.

Section 179 FAQ

Section 179 is an election to expense assets up to a dollar limit ($2.5M in 2026), and it can't create a loss — it's capped at your business income. Bonus depreciation (100% in 2026) applies automatically to remaining basis, has no dollar cap, and can create a loss. Most businesses use §179 first, then bonus depreciation mops up the rest.
If it's a heavy truck, cargo van, or SUV over 6,000 lb GVWR used 100% for business, yes — Section 179 plus 100% bonus depreciation generally lets you deduct the full business-use cost in year one. Passenger cars under 6,000 lb are capped by the luxury-auto rules (~$20,400 the first year).
You can only deduct the business-use share. A $60,000 truck used 80% for business has a $48,000 deductible basis. Business use must be over 50% to claim Section 179 on a vehicle, and if it later drops below 50% you may have to recapture part of the deduction as income.
No — it reduces your taxable income, not your tax bill directly. The actual savings equal the deduction times your marginal tax rate. A $50,000 write-off at a 32% combined rate saves about $16,000 in tax. This calculator shows that figure on the "First-Year Tax Savings" line.

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✔ Reviewed by the True Value Calc editorial team🗓 Last updated June 2026📚 Sources: Peer-reviewed formulas & official U.S. government data