Section 179 Tax Deductions

  
Vehicles that deliver, even a huge tax break.
Section 179 Tax Savings

Section 179 of the I.R.S. tax code offers significant deductions on qualifying business vehicles.

Section 179 Highlights

  • Section 179 allows qualifying businesses to deduct up to the full purchase price of certain new or used vehicles, equipment and/or software purchased and placed into service during the tax year.
  • To qualify, the percentage of business use for the vehicle, equipment or software must be more than 50%.
A Mercedes-Benz van parked in a grassy field surrounded by trees.
A man and a woman repairing a bike outside a Mercedes-Benz van.
What business vehicles may qualify?2

You may qualify if you:

  • Are a business that purchased or financed qualifying new or used business equipment, including certain business-use vehicles, during the 2025 tax year.

  • Put the equipment into service between January 1, 2025, and December 31, 2025.

  • Used this equipment for business purposes more than 50% of the time.

  • Spent less than $4,000,000 on this equipment.

Who Qualifies for Section 179?

All businesses that purchase, finance, and/or lease new or used business equipment during tax year 2025 should qualify for the Section 179 Deduction.

Most tangible goods used by American businesses, including "off-the-shelf" software and business-use vehicles, like the Mercedes-Benz Sprinter, (restrictions apply) qualify for the Section 179 Deduction.


What vehicles are allowed?

Mercedes-Benz of Grapevine offers several SUVs over 6,000 pounds that may qualify for the Section 179 Tax Deduction. Contact us with any questions about vehicles available in our inventory and by special order. IRS Publication 946 mentions the maximum expense deduction for an SUV over 6,000 pounds as being $31,300 for 2025.*

*Disclaimer: Please consult with your tax advisor for more details on the possible tax deductibility.

Section 179's "More Than 50 Percent Business-Use" Requirement

Contact your tax professional to see if you can take advantage of the Section 179 Benefits. The equipment, vehicle(s), and/or software must be used for business purposes more than 50% of the time to qualify for the Section 179 Deduction. Simply multiply the cost of the equipment, vehicle(s), and/or software by the percentage of business-use to arrive at the monetary amount eligible for Section 179.