Section 179 in 2025: Tax Deductions for Commercial Vehicles
If your company purchased a commercial vehicle from Fred Beans in the last calendar year, you might be able to take advantage of Section 179 of the IRS tax code, which allows businesses to deduct the purchase price of qualifying vehicles.
Read on to learn all you need to know about how section 179 applies to commercial vehicles.
Disclaimer: This page is for informational purposes. Please consult with a tax professional if you have questions about section 179 deductions.
What Vehicles Qualify for Section 179 Deductions?
To qualify for the deduction, your vehicle must meet the following requirements:
- The vehicle must have a GVWR of 6,000 pounds or more.
- Your vehicle is being used for business purposes within the calendar year it was purchased.
- The vehicle was immediately put to use.
Nearly our entire inventory qualifies for section 179. Popular qualifying models include:
- F-150
- F-250
- F-350
- F-550
- Transit 250
- Silverado 2500
Where can I find my vehicle’s GVWR?
The gross vehicle weight rating (GVWR) is the amount of weight your vehicle can transport. Your manufacturer label shows the GVWR for your vehicle, and it can usually be found in the inside of the driver’s side door.
Section 179 FAQs
Can a vehicle under 6,000 GVWR qualify for deductions?
Yes, but the deduction will be a lower amount.
Do used vehicles qualify for section 179?
Yes, used trucks can qualify for deductions.
Does a pickup truck qualify for Section 179?
Most pickup trucks qualify, as long as they meet the requirements mentioned above.
What is the deduction limit for 2025 and beyond?
As of 2025, the maximum deduction is $1,250,000 (phase-out limit $3,130,000), and $2,500,000 (phase-out limit $4,000,000) in 2026.
What documents are needed to receive the deduction?
- Invoice or bill of sale
- GVWR certification
- Mileage logs
- Proof of business use
Can section 179 be used with bonus depreciation?
In some cases, yes. Bonus depreciation and section 179 offer similar benefits, but there are some key differences.
Section 179 allows you to deduct a set dollar amount, but with bonus depreciation, you can deduct a percentage of the cost of the assets / property you purchased.
For assets purchased after January 19, 2025, bonus depreciation is 100%. Any 2025 assets purchased prior to that date are capped at 40% bonus depreciation. Businesses can use bonus depreciation even if they’re not profitable, unlike section 179, which only applies to profitable companies.
Speak with a tax expert to learn if you can take advantage of section 179 and bonus depreciation.