The One Big Beautiful Bill Act, signed into law by President Trump, permanently restored 100% bonus depreciation for qualified property acquired after January 19, 2025. Paired with Section 179 expensing, this combination allows many heavy vehicles placed in service by December 31, 2026 to be fully deducted in the year of purchase when used more than 50 percent for business. Vehicles with a gross vehicle weight rating over 6,000 pounds avoid the restrictive luxury-auto depreciation caps that limit lighter cars and crossovers to roughly $20,300 in the first year even with bonus depreciation.
For heavy SUVs rated between 6,001 and 14,000 pounds, Section 179 is capped at $32,000 for 2026, but 100 percent bonus depreciation generally covers the remaining business-use portion of the cost. Qualifying pickups with an interior cargo bed of at least six feet that is not readily accessible from the passenger compartment, along with many cargo vans, escape the SUV cap entirely and can take full Section 179 treatment up to the overall $2.56 million limit, subject to phase-out when total qualifying purchases exceed $4.09 million.
To claim these benefits the vehicle must be acquired after the January 19, 2025 cutoff date, actually owned by the business, and placed in service—ready and available for use—on or before December 31. Business use must exceed 50 percent in the year of acquisition and throughout the recovery period, supported by contemporaneous mileage logs. Both new and used vehicles can qualify if the other conditions are met, and financing is allowed. The immediate deduction reduces taxable income in the current year rather than spreading it over five or more years under regular MACRS depreciation, which can meaningfully lower the effective after-tax cost of a vehicle needed for client meetings, site visits, hauling equipment, or other legitimate business activities.
These rules reward owners who act before the calendar year closes. Waiting until January simply shifts the deduction into the following tax year and forgoes the opportunity to offset 2026 income. Careful attention to the exact GVWR on the door-jamb sticker, bed length for pickups, and documented business use is essential, because small differences in configuration can change whether the SUV cap applies. Consulting a tax professional before purchase ensures the vehicle and the buyer’s overall tax situation align with the available elections.
Are you in the market for a new or used qualifying SUV or truck before year-end? If so, tell us which SUV and truck you would be your choices and ultimately choose which of the two you would ultimately get—and why.
F-150? Range Rover? Silverado? Ram? G-Class? Grand Cherokee? BMW X5? Which???