Section 179 Tax Deduction
Business Vehicle Tax Info
Section 179 Tax Deduction for Commercial Vehicles
If you use a vehicle for business, Section 179 may allow eligible businesses to deduct all or part of the purchase price of qualifying vehicles (like certain trucks and vans) when placed in service rather than depreciating over time.
Jack Madden Ford • Norwood, MA • Commercial & Fleet Support
How Section 179 Works
Under IRS rules, many businesses can elect to expense (deduct) the cost of certain qualifying property often including business-use vehicles when placed in service. This can reduce taxable income for the year you put the vehicle to work.
What Vehicles May Qualify?
Qualification depends on multiple factors (vehicle type/weight/classification, business-use percentage, and how it’s placed in service). Some common examples that may qualify include:
- Pickups, vans, and certain SUVs used more than 50% for qualified business use.
- Vehicles dedicated primarily to work (limited personal use).
- Cargo/box-style vehicles designed for commercial use.
Important: Vehicle qualification and allowable deduction amounts can vary. We recommend speaking with your tax professional to confirm what applies to your business.
Start Here: What You’ll Want to Know
- Your estimated business-use percentage (and whether it’s above 50%).
- Whether the vehicle will be placed in service during the current tax year.
- If you’re purchasing, financing, or leasing and how your accountant plans to treat it for tax purposes.
- What kind of vehicle your business needs: work truck, cargo van, passenger van, or fleet.