2026 Deductions and DERA Grant
Stop Paying More Taxes than You Need to Reduce them through the Section 179 Expense Provision
You can lower your 2026 taxes by buying a machine and placing it into service before December 31, 2026. The Section 179 Expense
Provision allows a deduction up to $2,560,000 for new and used equipment purchases.
Exclusions apply. This information should not be considered tax advice. Consult your tax advisor or the IRS for additional information.
Diesel Emissions Reduction Act
The EPA recently opened its 2026 DERA, Diesel Emissions Reduction Act, grant program. This program provides funding to eligible organizations to replace or upgrade older diesel powered equipment and help reduce emissions. This funding creates a great opportunity for organizations looking to replace existing diesel equipment.
Eligible applicants include:
A regional, state (including the District of Columbia), local agency, tribal agency, or port authority that has jurisdiction over transportation or air quality. School districts, municipalities, metropolitan planning organizations, cities, and counties are all generally eligible entities under this grant program.
A nonprofit organization or institution that represents or provides pollution reduction or educational services to people or organizations
that own or operate diesel fleets
A nonprofit whose principal purpose is promoting transportation or air quality.
Eligible equipment:
Diesel powered nonroad engines and equipment used in construction, cargo handling (including at ports and airports), agriculture, mining, and energy production, including stationary generators and pumps.
Important requirement:
DERA funded replacement projects generally require the existing diesel equipment to be scrapped or permanently disabled within 90 days of the replacement equipment becoming operational.
If you are considering replacing existing diesel equipment with an electric alternative, Way-Ken Contractors Supply Company can help you explore equipment options for your application that align with DERA requirements.
Applications must be submitted electronically through Grants.gov by January 22, 2027, at 11:59 p.m. ET.
