Save Big with Section 179 Tax Deductions on Commercial Trucks

If your business is thinking about upgrading its fleet or purchasing a new work truck, Section 179 of the IRS tax code could mean major savings.

At Peach State Truck Centers, we’re here to help you take advantage of this opportunity before the end of the tax year.

What is Section 179?

Section 179 allows businesses to deduct the full purchase price of qualifying equipment—including commercial vehicles and off-the-shelf software—that is purchased or financed during the tax year and placed into service by December 31. Instead of depreciating equipment over several years, this deduction allows you to write off the entire cost in the year of purchase.

Originally nicknamed the “SUV Tax Loophole,” Section 179 has evolved into one of the most powerful tax tools for small and mid-sized businesses. It has consistently been included in tax stimulus packages to encourage business investment.

2025 Section 179 Deduction Limits

• Deduction Limit: $1,220,000 for qualifying new or used equipment.
• Spending Cap: $3,050,000. Once this is exceeded, the deduction is reduced dollar-for-dollar and phases out completely at $4,270,000.
• Bonus Depreciation: An additional 80% bonus depreciation is available in 2025 and can be used after the spending cap is reached.

This means even if your equipment costs exceed the Section 179 limits, you may still benefit from significant first-year deductions via bonus depreciation.

Who Qualifies?

All businesses that purchase, finance, and/or lease new or used business equipment during the tax year may qualify, provided the equipment is used for business purposes more than 50% of the time. This includes most tangible goods, commercial vehicles, and even software.

To qualify for the 2025 tax year, equipment must be purchased or financed and placed in service between January 1, 2025, and December 31, 2025.

Commercial Vehicles & Section 179

Certain heavy-duty work trucks may qualify for the full Section 179 deduction, especially those with a Gross Vehicle Weight Rating (GVWR) over 6,000 lbs. The vehicle must be used more than 50% of the time for business purposes.

Ford Trucks from Peach State That May Qualify:

• Ford F-150 (certain configurations)
• Ford F-250 Super Duty
• Ford F-350 Super Duty
• Ford F-450 and F-550 Super Duty
• Ford Transit Cargo Vans and Passenger Wagons

Section 179 vs. Bonus Depreciation

While both provisions offer accelerated tax savings, there are a few key differences:

• Section 179 is applied first and includes new and used equipment.
• Bonus Depreciation is typically taken after Section 179 and can also be used by businesses with a net loss to carry forward deductions.
• Bonus Depreciation in 2025 is set at 80%.

Business-Use Requirement

To claim Section 179, the equipment or vehicle must be used for business purposes more than 50% of the time. Simply multiply the cost of the vehicle or equipment by the business-use percentage to determine your eligible deduction.

Let Peach State Truck Centers Help You Maximize Your Savings

Navigating tax deductions doesn’t have to be complicated. Our team at Peach State Truck Centers can walk you through eligible commercial vehicles and help ensure your purchase meets the requirements for the Section 179 deduction. Don’t wait—make your investment work harder for your business by acting before year’s end.

Visit us or contact our commercial vehicle experts today.