Updated: January 2026
Do Your Customers Know Their Equipment and Vehicle Purchases May Be 100% Tax Deductible?
Buyers love to save money and want to understand the after-tax cost of equipment and vehicles. Section 179 may let businesses expense qualifying equipment, vehicles, and software in the year the asset is placed in service—even if financed. For tax years beginning in 2026, the maximum Section 179 deduction is $2,560,000, with a phase-out beginning above $4,090,000 of qualifying property placed in service. For sellers, Section 179 isn’t just a tax rule—it’s a practical way to explain purchase timing and after-tax economics. It’s a powerful sales tool.
Why Section 179 Matters to Sellers
Many business owners don’t learn about Section 179 until tax time—by then, they may have missed the window to place equipment in service for that year. This is where you come in. By educating customers about this tax incentive, you create a win-win: the customer understands their potential savings, and you may close more sales.
Section 179 can reduce a buyer’s after-tax cost by accelerating deductions into year one. (Example: A buyer who can fully deduct a $50,000 purchase at a 21% federal rate saves roughly $10,500—making the effective cost closer to $39,500. Actual savings depend on the buyer’s situation.) When you frame equipment purchases as investments with real tax benefits, hesitant buyers are more likely to act.
Leverage Section 179 in Your Sales Strategy
To make the most of Section 179, incorporate it into sales conversations, marketing materials, and year-end promotions. Make sure your sales team understands the basics of the deduction and can confidently discuss how it benefits customers. Emphasize the year-end deadline – equipment and vehicles must be placed in service by December 31 for calendar-year taxpayers to count for that year. This creates natural urgency, and it pairs well with delivery scheduling and equipment financing to help customers act before year-end. By positioning Section 179 as a limited-time opportunity, you create a compelling incentive for customers to act before the deadline for that tax year.
Seller Messaging Toolkit (2026)
30-second script your team can use: “Many businesses may be able to expense qualifying equipment in the year it’s placed in service—even if financed. That can reduce taxable income and lower the after-tax cost. Eligibility depends on business use and the buyer’s tax situation, so we always recommend confirming with a tax professional. Here are the current limits and deadlines.”
Key seller takeaways:
- Section 179 is a deduction (reduces taxable income), not a credit
- “Placed in service” timing matters—not just ordered, paid for, or delivered
- Section 179 Qualified Financing can qualify when structured as a purchase (loan vs. lease rules differ)
- Vehicles have additional rules and limits—review the vehicle guide before advertising “100% deductible”
- Always encourage buyers to confirm eligibility with their tax professional
Display Section 179 Qualified Badges
To help you educate customers, we offer free official “Section 179 Qualified” Badges for display on your website and sales materials. These badges are provided by Section179.Org for marketing and educational purposes. Displaying these Badges informs buyers that your products may be eligible for this robust tax deduction, ultimately saving them money and encouraging them to invest in themselves. Here are a few examples of Badges available for free.
Websites
Several Badge sizes are available for your website, and placement on individual product pages. Copy-and-paste HTML code is provided.
Marketing Collateral
You can also copy and paste these Badges for insertion into brochures and catalogs.
Specialty Badges
If you offer Section 179 Qualified Financing, there is a Badge that states that as well.
Complete this quick form to get your free Badges
Seller FAQs
Q: Is Section 179 a tax credit?
A: No, Section 179 is a deduction that reduces taxable income. The actual tax impact depends on the buyer’s tax rate and ability to use the deduction.
Q: Can a customer still qualify if they finance the purchase?
A: Yes, if structured as a purchase and the asset is placed in service during the tax year. Loan vs. lease details matter—see Section 179 Qualified Financing.
Q: What does “placed in service” mean?
A: The asset must be delivered, installed (if applicable), and ready and available for its intended business use—not merely ordered or paid for.
Q: Do used machines qualify?
A: Yes, Section 179 can apply to equipment that’s “new to the buyer” and used more than 50% for business.
Q: Are vehicles always “100% deductible”?
A: Not necessarily. Passenger vehicles, SUVs, and other “listed property” have additional limits and documentation rules. See the vehicle guide before advertising specific outcomes.
Q: What about 100% bonus depreciation?
A: Bonus depreciation is a separate first-year deduction with different rules. For current details, see Section 179 vs. bonus depreciation.
Q: Do state taxes follow federal Section 179?
A: It varies. Some states conform; others limit or decouple from Section 179 and/or bonus depreciation. Check state conformity rules.
Explore Our Section 179 Seller Resources
To help you capitalize on Section 179, we’ve created seller-focused resources and practical guides.
- Sales & Marketing Strategies: Learn how to incorporate Section 179 into your sales pitches and promotional campaigns to drive more equipment, vehicle, and software sales. Read More: Sales & Marketing Strategies
- Financing Strategies: Discover ways to combine financing offers with Section 179’s tax benefits, helping customers afford big purchases while preserving their cash flow. Read More: Financing Strategies
- Case Studies & FAQ: See how other sellers have increased sales using Section 179, and get answers to common questions about using this tax incentive as a selling tool. Read More: Case Studies & FAQ