PUT THE 2026 TAX LAW TO WORK FOR YOUR BUSINESS
An eligible new or used GMC or Buick purchased for more than 50% qualified business use may qualify for Section 179 and bonus depreciation. Depending on the vehicle and your circumstances, you may deduct up to 100% of its business-use purchase cost in the first year. The One Big Beautiful Bill Act restored permanent 100% bonus depreciation for eligible property acquired and placed in service after January 19, 2025. The maximum Section 179 deduction for tax years beginning in 2026 is $2,560,000 across all qualifying property, subject to limits below.
For calendar-year taxpayers claiming a 2026 deduction, the vehicle must be ready and available for its intended business use by December 31, 2026. Ordering or paying a deposit alone is not enough.
Consult your tax professional before purchasing or claiming a deduction. This is general federal tax information, not tax advice or a guarantee of eligibility. A deduction reduces taxable income; it is not a dollar-for-dollar tax credit. State tax treatment may differ.
2026 VEHICLES THAT MAY QUALIFY
Up to 100% of business-use cost
Not subject to the $32,000 SUV cap when properly configured. Section 179 is subject to the $2,560,000 overall annual limit and other restrictions.
Qualifying heavy pickups with beds at least 6 feet long, cargo vans, passenger vans and commercial upfits.
- Sierra 1500 Standard & Long Bed
- Sierra 2500 HD
- Sierra 3500 HD
- Sierra 3500 HD Chassis Cab
- Savana Cargo Van
- Savana Passenger Van (factory 12- or 15-passenger seating; verify the seating rule below)
- Savana Cutaway
Up to 100% of business-use cost
Up to $32,000 per vehicle under Section 179, plus 100% bonus depreciation on the eligible remaining business-use basis.
Qualifying SUVs, crossovers and short-bed trucks over 6,000 lbs and not over 14,000 lbs GVWR.
- Yukon (including Denali)
- Yukon XL (including Denali)
- Acadia (including Denali)
- Canyon
- Sierra 1500 Short Bed (including Denali)
- Buick Enclave
Up to $20,300
2026 first-year depreciation limit with bonus depreciation at 100% business use; $12,300 without bonus depreciation. Limits are reduced for personal use.
The listed SUVs have a GVWR of 6,000 lbs or less.
- Terrain (including Denali)
- Buick Envision
- Buick Encore GX
- Buick Envista
These are configuration-dependent examples, not a guarantee that every model year or trim qualifies. GVWR (gross vehicle weight rating) is not curb weight or towing capacity. Check the specific vehicle's certification label inside the driver's door, bed dimensions, seating and any upfit with your tax professional before buying.
The passenger-van exception requires seating for more than nine passengers behind the driver's seat, not simply 10 total seats. Verify modified vans individually. The pickup exception requires a cargo area at least 6 feet in interior length that is not readily accessible from the passenger compartment. Chassis cabs and cutaways must be assessed in their completed configuration.
HOW THE DEDUCTION WORKS
- More than 50% qualified business use. Only the business-use share of cost is eligible. Ordinary commuting is generally personal use. Keep mileage and expense records. A later drop to 50% or less business use may require recapturing deductions.
- Placed in service in your tax year. For calendar-year taxpayers, the 2026 deadline is December 31, 2026. The vehicle must be ready and available for its intended business use; a purchase order alone does not qualify. Fiscal-year businesses should confirm their deadline.
- Eligible new and used purchases. Used vehicles may qualify, but acquisition restrictions apply, including rules on prior use by the taxpayer and purchases from related parties. Your tax professional should review the transaction.
- Financing counts. An eligible financed vehicle may qualify based on its business-use cost, not only the cash paid during the year.
- The annual Section 179 limit is not per vehicle. For tax years beginning in 2026, the $2,560,000 limit covers all qualifying property and is reduced dollar for dollar when total qualifying property placed in service exceeds $4,090,000. Section 179 also has a business-income limit; disallowed amounts may carry forward. Bonus depreciation has separate rules and other tax limitations can apply.
Example: $75,000 Yukon Denali, 100% business use
$32,000 under Section 179 + $43,000 at 100% bonus depreciation = $75,000 potentially deductible in 2026.
Example: $30,000 Encore GX, 100% business use = up to $20,300 potentially deductible in 2026, with the remaining basis recovered in later years.
Illustrations assume eligible purchases, 100% qualified business use, timely placement in service, sufficient Section 179 business income and no other limiting circumstances. These are deductions, not tax savings. Consult your tax professional for your actual result.
Business buyers generally claim depreciation and Section 179 on IRS Form 4562. See IRS Publication 946 and talk to your tax advisor.
BUYING FOR PERSONAL USE? YOU MAY BE ABLE TO DEDUCT YOUR CAR-LOAN INTEREST
This is a separate deduction from Section 179. For tax years 2025 through 2028, eligible individuals may deduct up to $10,000 per year per federal tax return in qualified vehicle-loan interest, across all qualifying loans. The purchase loan must be incurred after December 31, 2024 and secured by a first lien on the vehicle. The vehicle must be purchased for personal use, its original use must begin with you, its GVWR must be less than 14,000 lbs, and its final assembly must occur in the United States. Used vehicles and leases do not qualify. The deduction is available whether or not you itemize.
The otherwise allowable deduction is reduced, but not below zero, by $200 for every $1,000 or fraction of $1,000 that modified adjusted gross income exceeds $100,000, or $200,000 for married couples filing jointly. Interest already deducted elsewhere cannot be deducted again.
Verify the specific vehicle
- Check final assembly on the window sticker or use the full VIN in the NHTSA VIN decoder.
- A model name, trim or VIN prefix alone does not establish eligibility. Ask us to help check the exact vehicle.
- Heavy-duty trucks and vans must still be below 14,000 lbs GVWR for this personal-loan deduction.
- U.S. final assembly is a requirement for this interest deduction, not a general requirement for Section 179.
How to claim it
- Report the vehicle's VIN on your tax return.
- For 2026, a lender generally must furnish Form 1098-VLI when it receives at least $600 in interest on a specified passenger vehicle loan. The reporting threshold applies separately to each loan.
- Less than $600 in interest may still be deductible if you meet the requirements. Keep your loan and payment records.
- Review the IRS car-loan interest guidance with your tax professional.
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Consult your tax professional. This page provides general U.S. federal tax information, not tax, legal or accounting advice. Eligibility and deduction amounts depend on the specific vehicle, purchase transaction, business-use percentage, income and other circumstances. Howard Bentley Buick GMC does not guarantee eligibility, a deduction or tax savings. Consult your tax professional before purchasing and before claiming any deduction, including how federal and state rules apply to you. Tax laws and guidance may change.
2026 deduction amounts checked October 27, 2026 against IRS Rev. Proc. 2025-32 and Rev. Proc. 2026-15. See also Publication 946 and IRS loan-interest guidance.
