Section 179 Tax Deduction 2026: Save on Commercial Equipment Before Year-End

As 2026 comes to a close, business owners throughout Virginia are evaluating equipment needs, reviewing expenses, and preparing for the year ahead.

If your business depends on tractors, skid steers, compact track loaders, commercial mowers, or professional landscaping equipment, you should understand an important tax provision before making your next purchase.

Section 179 of the IRS tax code lets qualifying businesses deduct the cost of eligible equipment in the year it is placed in service, rather than depreciating that cost over several years.

For contractors, landscapers, arborists, property maintenance companies, and other commercial operations, this deduction may offer a valuable opportunity to invest in equipment while managing taxable income.

At K&M Lawn, Garden & Arborist Supplies in Culpeper, Virginia, we're helping customers explore their equipment options as the December 31 deadline approaches.

What Is the Section 179 Deduction for 2026?

Section 179 is a federal tax provision that allows eligible businesses to expense qualifying equipment purchases, subject to specific IRS limits and requirements.

For the 2026 tax year:

• Maximum Section 179 deduction: $2,560,000
• Equipment purchase phaseout threshold: $4,090,000
• Qualifying property: Eligible new and used business equipment
• Deadline for calendar-year businesses: December 31, 2026
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The maximum deduction begins decreasing dollar for dollar when total qualifying equipment purchases exceed $4,090,000.

Most importantly, Section 179 is a tax deduction, not a dollar-for-dollar tax credit. The actual tax savings depend on your business's taxable income, tax rate, and eligibility.

What Commercial Equipment Qualifies for Section 179?

Many types of machinery and equipment used in business operations may qualify, as long as they meet IRS requirements.

Skid Steers and Compact Track Loaders

For construction, excavation, landscaping, and land management businesses, skid steers and compact track loaders are among the most versatile investments available.

Whether you're moving materials, grading, clearing property, or preparing job sites, these machines can help reduce labor requirements and expand your company's capabilities.

GEHL skid steers and compact track loaders, including qualifying new and used models, may qualify for Section 179 deductions when purchased and placed in service for business use.

Compact and Utility Tractors

Tractors are essential for agricultural operations, commercial properties, contractors, and landscape maintenance companies.

From mowing and material handling to loader work, grading, and attachment operation, the right tractor can serve multiple purposes year-round

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Yanmar compact and utility tractors may qualify for Section 179 when used in an eligible business operation.

Commercial Zero-Turn Mowers

Commercial mowing equipment is a significant investment for landscaping businesses, property maintenance companies, and organizations that maintain large properties.

Upgrading aging machines can help reduce downtime, improve operator productivity, and prepare your business for next season.

Qualifying Scag and Exmark commercial mowers may be eligible for Section 179 treatment.

Professional Arborist and Landscaping Equipment

Depending on the equipment and its business use, professional equipment such as stump grinders, chainsaws, brush cutters, and other commercial tools may qualify.

For tree care companies, arborists, and landscape contractors, these investments can improve efficiency and expand the services they provide.

K&M carries professional STIHL equipment, stump grinders, attachments, and other products designed for demanding commercial applications.

Can You Use Section 179 on Financed Equipment?

Yes. Qualifying financed equipment may be eligible for Section 179 deductions.

You do not necessarily have to pay the full purchase price in cash to take advantage of the deduction.

For example, a landscaping company that purchases a qualifying $75,000 compact track loader through financing may be eligible to deduct the equipment's qualifying cost in the year it is placed in service, subject to applicable tax limitations.

That doesn't mean the company automatically saves $75,000 in taxes. Rather, the deduction may reduce taxable income.

Financing can also help businesses preserve working capital while investing in machinery needed for growth.

K&M can help customers explore available equipment financing options, while their tax advisors determine the appropriate deduction strategy.

Does Used Equipment Qualify for Section 179?

Yes. Both new and used equipment may qualify for Section 179.

Used equipment must meet applicable IRS eligibility requirements, including rules involving business use and acquisition.

This means business owners considering a pre-owned tractor, skid steer, or commercial mower should not automatically overlook potential tax advantages.

The important consideration is whether the specific purchase meets the applicable requirements—not simply whether the equipment is new.

Why December 31, 2026, Matters

Timing is essential to Section 179 planning.

For most calendar-year businesses, qualifying equipment must be placed into service by December 31, 2026, to be considered for a deduction on the 2026 tax return.

Simply placing an order, paying a deposit, or signing financing paperwork before year-end may not be sufficient.

The equipment generally needs to be ready and available for its intended business use.

For businesses considering a compact track loader, tractor, commercial mower, or other machinery, beginning the purchasing process early can help avoid year-end delivery and availability challenges.

Three Reasons to Evaluate Equipment Needs Before Year-End

1. Replace Equipment That's Costing You Money

Frequent repairs, unexpected breakdowns, and aging equipment can directly affect profitability.

A newer machine may reduce maintenance expenses, improve uptime, and allow employees to complete more work.

2. Prepare for the 2027 Season

Contractors and landscaping companies often make their largest equipment decisions before the busy season.

Purchasing equipment before year-end may give your operation time to train employees, become familiar with new equipment, and prepare for upcoming contracts.

3. Evaluate Potential Tax Benefits

If equipment is already part of your business plan, Section 179 may make the timing of that purchase financially significant.

The right investment should make operational sense first, with potential tax benefits considered as part of the overall decision.

Your Virginia Commercial Equipment Partner

At K&M Lawn, Garden & Arborist Supplies in Culpeper, Virginia, we understand that commercial equipment is an investment in your business's productivity and future.

We work with contractors, landscaping companies, arborists, agricultural operations, property maintenance professionals, and commercial customers throughout Central and Northern Virginia.

Our equipment offerings include:

• GEHL: Skid steers, compact track loaders, and compact construction equipment
• Yanmar: Compact and utility tractors
• Scag and Exmark: Professional commercial mowing equipment
• STIHL: Professional landscaping, forestry, and arborist equipment
• Attachments and specialized equipment: Solutions to expand your equipment's versatility

Whether you're replacing an aging machine, expanding your fleet, or exploring equipment for new contracts, our team can help you evaluate available options.

Don't Wait Until the Last Minute

Section 179 may present an important opportunity for businesses planning equipment purchases before the end of 2026.

But tax benefits should complement a sound business decision—not replace one.

If your company needs equipment to work more efficiently, take on additional jobs, or prepare for growth in 2027, now is a good time to explore your options.

Contact K&M Lawn, Garden & Arborist Supplies in Culpeper, Virginia, to discuss commercial equipment availability, purchasing options, and financing.

Invest in the equipment your business needs today. Prepare for the opportunities ahead.

Frequently Asked Questions About Section 179

Can I deduct a skid steer or compact track loader in 2026?

Potentially, yes. Qualifying skid steers and compact track loaders used in an eligible business may qualify for Section 179, subject to IRS requirements and limitations.

Do Yanmar tractors qualify for Section 179?

A Yanmar tractor purchased for qualifying business use may be eligible. Personal-use equipment does not qualify for the business-use portion.

Can I deduct a commercial zero-turn mower?

Commercial mowers used in qualifying business operations may be eligible for Section 179 deductions.

Can I finance equipment and still claim Section 179?

Yes. Qualifying financed equipment may be eligible, even if you haven't paid the full purchase price, depending on the financing arrangement and applicable tax rules.

Is Section 179 available for used equipment?

Yes. Eligible used machinery may qualify if it meets IRS acquisition and business-use requirements.

What is the Section 179 deadline for 2026?

For most calendar-year businesses, you must place eligible equipment in service by December 31, 2026.

Additional Resources

IRS Publication 946 — How to Depreciate Property

Section179.org — Section 179 Information



Disclaimer: K&M Lawn, Garden & Arborist Supplies does not provide tax or legal advice. Section 179 eligibility depends on your specific business circumstances, applicable IRS regulations, taxable income, and equipment use. Consult a qualified tax professional before making equipment purchasing decisions based on potential tax deductions.