If you own a small business or work for yourself near Dayton, the Section 179 tax deduction may be one of the smartest ways to invest in a work-ready vehicle for the 2026 tax year. Our team at Erwin Chrysler Dodge Jeep Ram, a family-owned cornerstone of the Troy community for 51 years and counting, helps local business owners understand how qualifying Ram trucks and vans may fit into their vehicle tax strategy. This information is provided for informational purposes only, and you should always consult a qualified tax professional to confirm how Section 179 applies to your specific situation.
2026 Section 179 Tax Deduction Overview and Limits
Section 179 of the IRS tax code lets eligible businesses deduct the purchase price of qualifying equipment, including certain business-use Jeep and Ram vehicles, put into service during the tax year. It's designed as a true small-business incentive that rewards companies for investing in the tools and vehicles they need to grow. Here are the key details to review with your tax professional:
- 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 Ram Vehicles Qualify for Section 179?
A vehicle's eligibility for Section 179 depends largely on its Gross Vehicle Weight Rating (GVWR) and how it's used for your business. In general terms, heavier work-oriented trucks and vans offer 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 inventory spans a range of Ram trucks and commercial vans across multiple Gross Vehicle Weight Ratings to fit different business needs. Our team can show you which options may line up with the Section 179 category that fits your plans.
How Do I Use the Section 179 Tax Incentive?
Taking advantage of Section 179 starts with choosing a qualifying Ram vehicle and placing 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 Ram finance team can guide you through selecting an eligible commercial vehicle, though your accountant or tax professional should always confirm the exact deduction you can claim.
Commercial Ram Vehicles for Sale Near Me
When Troy and Dayton area business owners want a dealership they can trust, they turn to our team. As the oldest family-owned dealership in the area, we've built our reputation on the Erwin Way -- taking care of customers by doing things right the first time. From new Ram truck sales to certified Mopar service, we make it easy to find and finance the right work vehicle before the 2026 deadline.
Stop by our dealership at 2775 S Co Rd 25A in Troy, or contact our team to explore qualifying Ram trucks and vans and take the next step toward your Section 179 tax strategy. Experience the difference decades of dedication makes and discover The Erwin Way today!
1 Information accurate at date of publishing. Refer to https://www.section179.org for most up-to-date specifications.
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Erwin Chrysler Dodge Jeep Ram Section 179 FAQs
Can vehicles be deducted under Section 179?
Yes, Section 179 lets eligible businesses deduct the purchase price of qualifying business-use Ram vehicles placed into service during the tax year, with how a vehicle qualifies depending largely on its Gross Vehicle Weight Rating. Our Ram finance team at Erwin Chrysler Dodge Jeep Ram in Troy, OH can help you explore the Ram trucks and vans that may fit your tax strategy, though your tax professional should confirm the exact deduction.
Does Section 179 apply for used car purchases?
Yes, the deduction is good on new and used equipment as long as the vehicle is new to the buyer, and the 100% bonus depreciation also applies to both new and used. The vehicle must be used for business purposes more than 50% of the time and titled in the company's name to qualify.
Can Section 179 be claimed multiple times?
The deduction applies to qualifying equipment purchased and placed into use before December 31, 2026, with the annual deduction limit and spending cap governing how much you can claim each tax year. For your specific situation, always consult a qualified tax professional, then visit Erwin Chrysler Dodge Jeep Ram at 2775 S Co Rd 25A in Troy to explore eligible Ram trucks and vans.
What is the Section 179 tax deduction limit?
The 2026 deduction limit is $2,560,000, good on new and used equipment that is new to the buyer, whether purchased or leased. Businesses may also take advantage of 100% bonus depreciation on eligible assets, generally after the spending cap is reached.
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 available deduction begins to be reduced on a dollar-for-dollar basis, with complete phase-out at $6,650,000. To put a qualifying Ram to work for your business before the deadline, contact our team at Erwin Chrysler Dodge Jeep Ram near Dayton today.