Savings on a Volvo XC90 with the Section 179 Tax Incentive
Savings on a Volvo XC90 with the Section 179 Tax Incentive
How section 179 can benefit your business
If you’re considering adding or upgrading vehicles to your business fleet, Section 179 can make a significant difference in your bottom line. We recommend speaking with your financial or tax advisor to confirm eligibility and determine how this deduction can best benefit your business. This valuable incentive applies to a wide range of business investments—including new or pre-owned vehicles—helping businesses reinvest in their growth while lowering taxable income.
Section 179 deduction dollar limits for 2025.
For tax years beginning in 2025, the maximum Section 179 expense deduction is $2,500,000. This limit is reduced by the amount by which the cost of Section 179 property placed in service during the tax year exceeds $4,000,000.
Also, the maximum Section 179 expense deduction for sport utility vehicles placed in service in tax years beginning in 2025 is $31,300.
What Qualifies for Section 179?
- Business Vehicles: Over 6,000 lbs GVWR (Note: SUVs/trucks have a $31,300 limit)
- The property must be used more than 50% for business in the year it is placed into service. If usage is partly personal, the deduction is reduced proportionally.
- The property must be installed and ready for active business use within the same tax year you plan to claim the deduction.
- Section 179 requires that the equipment or software be acquired by purchase, financing, or a capital lease that qualifies under IRS guidelines.
