Ron Tonkin Chrysler Jeep Dodge Ram FIAT
If you’re a small business owner looking to purchase new commercial vehicles, the 2025 Section 179 tax deduction can be a major advantage. Instead of depreciating your vehicles over several years, you can write off a significant portion of the cost right away. This is especially valuable for businesses that depend on trucks, vans, or other commercial-use vehicles, as it boosts cash flow, lowers taxable income for the year, and helps you upgrade your fleet sooner. When applied correctly, Section 179 reduces your overall tax liability and frees up funds to reinvest in your operations. It also works alongside Bonus Depreciation to further increase first-year deductions, particularly for heavier vehicles. Below is a breakdown of how the deduction works and how to make the most of it.
In 2025, businesses can still take advantage of 100% bonus depreciation on qualifying equipment and vehicles after applying Section 179. This allows you to deduct the remaining cost of the vehicle in the first year, once you’ve already used the maximum Section 179 deduction.
When combined, Section 179 and 100% bonus depreciation can substantially lower the first-year taxable cost of a commercial vehicle—depending on your business income, qualification requirements, and IRS guidelines.
For further information be sure to contact your Tax Accountant.
