Section 179

Quick Facts Section 179 Deductions

• You can get a tax write-off if you purchase a vehicle that weighs over 6,000 pounds for business purposes.
• Section 179 deductions allow companies to write off up to $31,300 of the purchase price of a qualifying vehicle used for business purposes.
• Some buyers might also be eligible for bonus depreciation, which allows businesses to write off 40% of the vehicle’s depreciation in its first year of use.
• Companies must keep the vehicle in business use throughout its useful life or pay back part of the deduction.

A section of the IRS tax code provides additional deductions to business income in the year a company puts a qualifying car, truck, SUV or van into service. The Section 179 deduction and bonus depreciation rules can reduce your company’s tax liability when you buy a vehicle for business use. Here is a rough calculation showing how a Section 179 deduction and bonus depreciation can save your small business money.

Section 179 Deduction: Example of a Calculation 

Suppose you buy a used full-size SUV for $75,000 in 2025 to use exclusively for your business. Because it’s a heavy SUV and 100% of its use is for company business, you can take the limited Section 179 deduction of $31,300 on your 2025 tax return. Additionally, you can claim a first-year bonus depreciation deduction on the remaining cost of $43,700 ($75,000 minus $31,300). For 2025, that’s 40% of the figure, or $17,480 (40% of $43,700). Your total deduction write-off for the SUV is $48,780 ($31,300 plus $17,480).

We encourage you to contact your tax advisor concerning the 2025 Section 179 deduction and specific qualification details.