Section 179 Tax Deduction in Brookings, SD
If you own a small business or are self-employed, the 2026 Section 179 tax deduction may help you invest in the work-ready vehicles that keep your operation moving. Our family-owned team at Einspahr Auto Plaza has served South Dakota customers since 1969, and we're here to help local business owners in Brookings and near Sioux Falls explore qualifying trucks, vans and SUVs.
This content is for informational purposes only, so please consult a qualified tax professional to confirm how Section 179 applies to your specific situation.
2026 Section 179 Tax Deduction Overview & Limits
Section 179 of the IRS tax code lets qualifying businesses deduct the cost of eligible equipment, including certain business-use vehicles, in the year they are purchased and placed into service. It is designed as a true small-business incentive that rewards companies for investing in the tools and vehicles they need to grow.
Review the general guidelines below, then talk with a qualified tax professional about your specific situation before making a purchase.
- 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 Vehicles Qualify for Section 179?
How a vehicle qualifies under Section 179 depends largely on its gross vehicle weight rating (GVWR) and how it is used for your business. Heavier work-focused trucks and vans generally receive more favorable treatment, while lighter passenger vehicles are subject to stricter IRS limits.
Review the categories below, then explore the business-ready models we carry.
- New & Used Vocational Trucks and Vans: Full Section 179 deduction available1
- Heavy SUVs & Trucks (Over 6,000 lbs. GVW) (excludes some pickups/vans): $32,000 maximum Section 1791
- Cars, Light Trucks & SUVs (Under 6,000 lbs.): Subject to IRS "luxury auto" depreciation limits (Section 280F)1
Because we carry a wide range of models from Ford, Jeep, Ram and more, you have the flexibility to match the right truck, van or SUV to your business goals. Browse our new commercial vehicles to find a business-ready model that 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 new or used commercial vehicle at our dealership and putting 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 is titled in your company's name rather than your personal name.
Our finance team can help you select an eligible truck, van or SUV, though your accountant or tax professional should always confirm the exact deduction you can claim.
Commercial Vehicles for Sale Near Me
For more than 50 years, Einspahr Auto Plaza has been a trusted, family-owned destination for business owners throughout Brookings and the Sioux Falls area, offering sales, financing and certified service under one roof. Conveniently located at 2020 8th St in Brookings, we make it easy to find and finance the right work vehicle before the 2026 deadline, with custom ordering available if you don't see exactly what you need.
Visit us today or contact Einspahr Auto Plaza to explore qualifying trucks, vans and SUVs and put Section 179 to work for your business.
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1 Information accurate at date of publishing. Refer to https://www.section179.org for most up-to-date specifications.
Einspahr Auto Plaza Section 179 Tax Deduction FAQs
01
Can vehicles be deducted under Section 179?
Yes, certain business-use vehicles qualify under Section 179, which lets eligible businesses deduct the cost of qualifying equipment in the year it is purchased and placed into service. At Einspahr Auto Plaza, our finance team can help you explore qualifying trucks, vans and SUVs, though your tax professional should confirm the exact deduction you can claim.
02
Does Section 179 apply for used car purchases?
Section 179 applies to both new and used equipment, as long as the vehicle is new to the buyer and placed into business use before December 31, 2026. Because Einspahr Auto Plaza carries a wide range of models from Ford, Jeep, Ram and more, you have flexibility to match the right vehicle and financing path to your business goals.
03
Can Section 179 be claimed multiple times?
Section 179 is available each tax year, with qualifying equipment needing to be purchased and put into use before December 31, 2026, used for business more than 50% of the time and titled in the company's name. Since this content is for informational purposes only, please consult a qualified tax professional to confirm how Section 179 applies to your specific situation.
04
What is the Section 179 tax deduction limit?
For 2026, the Section 179 deduction limit is $2,560,000, good on new and used equipment that is purchased or leased. Stop by Einspahr Auto Plaza at 2020 8th St in Brookings, SD, or contact our team to explore qualifying business vehicles before the 2026 deadline.
05
What is the 2026 Section 179 spending cap?
The 2026 Section 179 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. This cap is what makes Section 179 a true small-business tax incentive at our family-owned Brookings dealership.