Permanent 100% Bonus Depreciation Alters Truck Ownership Economics for 2026

The permanent restoration of 100% bonus depreciation for qualifying equipment placed in service after Jan. 19, 2025, is reshaping the buy-versus-lease decision for truck owner-operators. Combined with Section 179 expensing, owner-operators can now deduct the full purchase price of a Class 8 tractor in the first year, dramatically reducing taxable income. A simplified illustration: an owner-operator with $100,000 taxable income buying a $90,000 used truck can claim $90,000 in Section 179, slashing taxable income to $10,000 and saving up to $20,000 in federal tax compared to a lease with no depreciation benefit. Bonus depreciation can further create net operating losses if the deduction exceeds income. Used trucks qualify, with average retail prices around $57,000, making the strategy accessible. However, depreciation recapture under Section 1245 taxes future sale gains as ordinary income, and state conformity varies. Finance leases structured as conditional sales may also qualify for depreciation. Taxpayers should consult a CPA to model specific outcomes.