Section 179 Tax Deduction at Midway Motors

2026 Section 179 Tax Deduction Overview & Limits

Section 179 is a federal tax incentive designed to encourage small businesses to invest in equipment, including qualifying new vehicles, by allowing them to deduct a significant portion of the purchase price in the year the asset is placed into service. For tax year 2026, the deduction remains a valuable opportunity for business owners across Kansas, from Wichita to Hutchinson and beyond, who need reliable work vehicles.

• 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)