Equipment tax rules for a tree business in the United States
The Internal Revenue Service publishes dollar limits for expensing equipment in the first year and rules for spreading the cost of a truck, chipper or crane over time. This page lists what its pages say.
Checked against the sources at the bottom of this page on October 9, 2026. Rules, fees and pay change: the source has the last word.
This page reports what the official source says. It is not legal advice: ask the office named here. The office is the Internal Revenue Service. The wider comparison is on the equipment tax rules page.
What the IRS says about recovering equipment cost
Topic no. 704, last reviewed September 24, 2026, describes depreciation as the recovery of the cost of property over a number of years. It says the modified accelerated cost recovery system generally applies to property placed in service after 1986. Property must be owned, used in business or to produce income, have a determinable life, and last more than one year.
Section 179 limits
| Item | Amount in Publication 946 |
|---|---|
| Maximum section 179 deduction, tax years beginning in 2026 | US$2,560,000 |
| Reduced when section 179 property placed in service exceeds | US$4,090,000 |
| Maximum section 179 deduction, 2025 | US$2,500,000 |
| Reduction threshold, 2025 | US$4,000,000 |
| Sport utility vehicle cap, 2026 | US$32,000 |
| Sport utility vehicle cap, 2025 | US$31,300 |
The publication says section 179 needs more than 50 percent business use. Topic no. 704 says the deduction is limited to taxable income from an active trade or business.
Heavy vehicles
Publication 946 defines a heavy sport utility vehicle as one rated above 6,000 pounds and not more than 14,000 pounds gross vehicle weight. It lists exceptions to the cap, including a cargo area of at least 6 feet of interior length that is not readily accessible from the passenger compartment, seating for more than nine behind the driver, and an integral enclosure. Limits for passenger automobiles are in chapter 5 of the same publication.
Special depreciation allowance
Public Law 119-21 reinstated the 100 percent special depreciation allowance for qualified property acquired and placed in service after January 19, 2025. The publication also describes an election for 40 percent instead.
The form
The IRS page for Form 4562 describes it as the form for depreciation and amortization, including listed property. It was last reviewed or updated on March 31, 2026. The page links the instructions and Publication 946.