If you're a small-business owner, you know the importance of taking advantage of every penny. While upgrading your operations with the purchase of new vehicles and equipment is a necessary expenditure, some may be hesitant about the costs. Fortunately, the Section 179 tax deduction makes it much easier for businesses to afford the vehicles they need to succeed!
Find out more about how the Section 179 tax incentive can help you save on qualifying trucks, vans and even passenger vehicles when you shop at our Ford dealership near Amherst. We can't wait to help your company expand its fleet for a great value!
What Is the Section 179 Tax Deduction?
Essentially, Section 179 is a tax code created by the IRS that allows businesses to deduct up to the full purchase price of qualifying vehicles purchased or financed during the tax year. This vehicle tax incentive was created by the U.S. government to encourage small and medium-sized businesses to buy equipment and invest in themselves.
How Does Section 179 Work?
Before the creation of the Section 179 tax code, a business would buy qualifying equipment and then typically write it off a little at a time through depreciation. While it's true that this is better than no write-off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it. And that's exactly what Section 179 does -- it allows your business to write off up to the entire purchase price of qualifying equipment for the current tax year. 1
This has made a big difference for many companies -- and the economy in general. Businesses have used Section 179 to purchase needed equipment right now, instead of waiting. For most small businesses, the entire cost of qualifying equipment can be written off on the 2025 tax return (up to $2,500,000). 1
2025 Section 179 Limits
Section 179 does come with limits -- there are caps to the total amount written off and limits to the total amount of the equipment purchased. These spending caps are part of what makes this tax deduction truly catered to small businesses.
For 2025, the Section 179 caps are as follows:
- 2025 Deduction Limit:$2,500,0001
- Valid on new and used equipment (must be new to buyer), either purchased or leased.
- 2025 Spending Cap: $4,000,0001
- Upon reaching this spending threshold, the maximum deduction you qualify for is reduced on a dollar-for-dollar basis.
- 2025 Bonus Depreciation: 100%1
- This tax benefit enables a business to deduct a substantial percentage of the purchase price of qualifying assets immediately. It's typically claimed after the Spending Cap is achieved.
Section 179 Qualifications
All businesses that purchase, finance or lease new or used business equipment during the 2025 tax year are eligible for Section 179 tax savings -- so long as your vehicles are put into use by December 31, 2025. 1
Vehicles that qualify for Section 179 tax savings include work-centric vehicles that are typically used for a specific purchase. Traditional passenger vehicles can qualify for a partial deduction, however, so long as they're used for business purposes at least 50% of the time.
Here's a breakdown of common vehicle types and their deduction limits for 2025:
- New & Used Vocational Trucks and Vans: Full Section 179 deduction available
- Heavy SUVs & Trucks (Over 6,000 lbs. GVW): $31,300 maximum Section 179
- Cars, Light Trucks & SUVs (Under 6,000 lbs.): $20,400 first-year maximum
The following Ford commercial and passenger vehicles may qualify for Section 179 tax savings:
- Ford F-150
- Ford Super Duty®
- Ford Transit Cargo Van
- Ford Transit Passenger Wagon
- Ford Expedition
- Ford Explorer
- Other Ford trucks, vans, and SUVs
Commercial Ford Sales Near Amherst, NY
Whether you're wondering if the Ford Explorer qualifies for Section 179 or have questions about the tax benefits of buying an F-250, the team at our Cheektowaga dealership is here to help. Contact Basil Ford to speak with one of our auto financing experts to go over the Section 179 tax deduction limitsand qualifications, then shop our inventory to find the new commercial truck or pre-owed van that's right for your business!
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1 Information accurate as of publishing date. Please consult https://www.section179.org for the most up-to-date details.