By the Emich Kia team · Published November 5, 2026 · Offers and prices checked November 5, 2026
The short answer
For 2026: Section 179 lets a business deduct up to $32,000 on an SUV over 6,000 lbs GVWR (Telluride, EV9, Carnival), plus 100% bonus depreciation, if it’s delivered by December 31. Colorado’s EV credit pays $750 or $3,250 on a new EV or plug-in delivered by December 31. The car loan interest deduction has no year-end deadline: it runs through 2028 for new, U.S.-assembled vehicles. This is general information, not tax advice.
The three rules at a glance
| Rule | Who it’s for | Kias that fit | Deadline |
|---|---|---|---|
| Section 179 + 100% bonus depreciation | Businesses using the vehicle more than 50% for work | SUVs over 6,000 lbs GVWR: 2027 Telluride and Telluride Hybrid, 2026 EV9, 2027 Carnival and Carnival Hybrid | Placed in service by Dec. 31, 2026 |
| Car loan interest deduction | Individuals financing a new vehicle for personal use | U.S.-assembled Kias: Telluride, Telluride Hybrid, gas Sorento, EV6, EV9 and most gas Sportages | None: tax years 2025–2028 |
| Colorado EV tax credit | Anyone buying, or leasing for 2+ years, a new EV or plug-in | Every Kia EV and plug-in hybrid under $80,000 MSRP | Delivered by Dec. 31, 2026 for 2026 amounts |
Section 179: the business SUV deadline
- For 2026, Section 179 is capped at $32,000 on an SUV over 6,000 lbs GVWR (the overall limit is $2,560,000, phasing out above $4,090,000 of purchases).
- 100% bonus depreciation, made permanent by the One Big Beautiful Bill Act for property acquired after January 19, 2025, can cover the rest of the business-use cost.
- Business use has to be more than 50%, and the vehicle must be delivered by December 31, 2026 to count for 2026.
- Leases don’t qualify for Section 179 or bonus depreciation.
Example: a 2027 Telluride EX AWD ($45,790 MSRP) fully deducted has a tax effect of about $10,990 at a 24% bracket. GVWR by trim, and more examples, are on our Section 179 page.
Need delivery before December 31?
Car loan interest deduction: no rush, but check the VIN
Individuals can deduct up to $10,000 a year of interest on a loan for a new vehicle with final assembly in the U.S., bought for personal use, for tax years 2025 through 2028. The full amount applies up to $100,000 of modified adjusted gross income ($200,000 joint) and phases out by $150,000 ($250,000 joint).
- Built in Georgia: Telluride, Telluride Hybrid, gas Sorento, EV6, EV9 and most gas Sportages. The Sportage Hybrid is built in Georgia or Korea, so check the VIN.
- Not U.S.-assembled: K5, Seltos, Carnival, Niro, Sorento Hybrid and Plug-In Hybrid, Sportage Plug-In Hybrid (Korea); K4, K4 Hatchback and EV3 (Mexico).
- VIN check: a Kia VIN starting with 5 or 7 means U.S. assembly.
- Leases, used vehicles and cash purchases don’t qualify. Buying in December just means only a few weeks of 2026 interest to deduct. Full details.
Colorado’s EV credit: delivery by Dec. 31
A new EV or plug-in hybrid delivered by December 31, 2026 earns $750, or $3,250 under $35,000 MSRP (the 2027 EV3 Light and Wind FWD). From January 1, 2027 the MSRP cap drops to $50,000, so every EV9, the EV6 GT-Line AWD and the Sorento Plug-In Hybrid X-Line SX Prestige earn $0. See Colorado EV deals before 2027.
Before you sign
- Ask your CPA which rule applies and how much business use you can document.
- Pick the vehicle and confirm it’s in stock or arriving in time.
- Schedule delivery before December 31. We can set the date when you buy.
Frequently Asked Questions
Which Kia models qualify for Section 179 as heavy SUVs?+
Kia models over 6,000 lbs GVWR include the 2027 Telluride and Telluride Hybrid, the 2026 EV9 and the 2027 Carnival and Carnival Hybrid. For 2026, Section 179 on these is capped at $32,000, and 100% bonus depreciation can cover the rest of the business-use cost.
What is the deadline for Section 179 in 2026?+
The vehicle must be placed in service, meaning delivered and available for business use, by December 31, 2026.
Does a leased Kia qualify for Section 179?+
No. Leased vehicles don’t qualify for Section 179 or bonus depreciation, and leases don’t qualify for the car loan interest deduction either.
Do I need to buy by December 31 for the car loan interest deduction?+
No. The deduction runs for tax years 2025 through 2028. Buying in December only means a few weeks of 2026 interest to deduct on your 2026 return.
Does the Kia Sportage qualify for the car loan interest deduction?+
Most gas Sportages are built in West Point, Georgia, and can qualify; some come from Korea. The Sportage Hybrid is built in Georgia or Korea, and the Plug-In Hybrid in Korea. Check the VIN: 5 or 7 means U.S. assembly.
Is this tax advice?+
No. This is general information as of November 2026. Confirm your situation with a tax professional.
Need it delivered by December 31?
Tell us your deadline and we’ll match you with a vehicle that’s here in time. Call 720-664-7691.
Emich Kia · 1260 S. Colorado Blvd., Denver, CO 80246 · Sales 720-664-7691 · Service 720-790-3450
Keep reading
Emich Kia does not provide tax advice. Tax rules summarized from the IRS (Rev. Proc. 2025-32), the One Big Beautiful Bill Act and the Colorado Department of Revenue as of November 2026; confirm your situation with a tax professional. Tax effect examples multiply the deduction by a tax bracket and are not a promise of savings. MSRP excludes destination, tax, title, registration and fees. Emich Kia charges no dealer add-ons; the only dealer fee is the $799 dealer handling fee. Offers and availability change; see Emich Kia for complete details.