How can I benefit from Section 179 Tax Savings?

Section 179 Eligible Vehicles & Deductions Amounts

Light Vehicles Eligible for Section 179
Any vehicles under 6,000 pounds fall under the “light” category. These vehicles are typically sedans, small SUVs, crossover SUVs, and luxury sports cars. The vehicle only needs to be used for business purposes at least 50 percent of the time to qualify for the deduction. Light vehicles qualify for up to a $12,200 deduction plus 80 percent bonus depreciation for a total cap of $20,200.

Heavy Vehicles – Land Rover SUVs Under 14,000 pounds
Larger SUVs like Mercedes-Benz GLS or GLE models can meet the under-14,000-pound criteria and fall into the “heavy” vehicle category. These vehicles have a deduction limit of up to $28,900 plus an 80-percent bonus depreciation.

100% Deduction for All Vehicles over 14,000 Pounds or Modified for Work Use
All vehicles over 14,000 pounds or modified for specific work purposes qualify for a 100% deduction of the full purchase price. For example, if you purchase a Sprinter van and outfit it as a mobile work vehicle, it qualifies for the full deduction even if it weighs less than 14,000 pounds. There are no caps for full-time work vehicles.

Does my business qualify for Section 179 tax savings?

Limitations on claiming Section 179 tax savings include:

• The total amount of the commercial equipment that you purchase can’t exceed $3,050,000
• You can’t write off more than $1,220,000
• You must put your vehicle into service by December 31st of the current tax season

Connect with our team of experts to learn more about the limitations of Section 179.

The 2024 Section 179 Deduction Limit for Businesses is $1,220,000

Jan 2, 2024 –The Section 179 deduction for 2024 is $1,220,000, which is an increase of $60,000 from 2023’s limit. This means U.S. companies can deduct the full purchase price of ALL qualified equipment purchases, up to the limit of $1,220,000. In addition, the “total equipment purchase” limit has been raised to $3,050,000 (up from $2.89 million in 2023).
The deduction can include both new and used equipment acquired and put into service between 1/1/2024 and 12/31/2024. In addition to these limits, businesses can also take advantage of a 60% bonus depreciation on both new and used equipment for the entirety of 2024.