As a small-business owner, you're likely aware of how crucial every penny is to your operations. Investing in new vehicles and equipment is necessary, yet the costs can be daunting. Thankfully, the Section 179 tax deduction is designed to make it easier for businesses to acquire the vehicles required for success!
Learn how the Section 179 tax incentive can aid you in saving on eligible trucks, vans and passenger vehicles when you visit our Ford dealership in Ellisville. Let us assist your company in expanding its fleet affordably!
What Is the Section 179 Tax Deduction?
Section 179 is an IRS tax code that permits businesses to deduct up to the entire purchase price of qualifying vehicles bought or financed within the tax year. Established by the U.S. government, this vehicle tax incentive encourages small- and medium-sized businesses to invest in necessary equipment.
How Does Section 179 Work?
Previously, businesses would gradually write off qualifying equipment through depreciation. Although this option was better than no deduction, most business owners prefer writing off the full purchase price for the year it's bought. Section 179 enables your business to do just that -- allowing a deduction up to the full cost of qualifying equipment for the current tax year.
This has significantly benefited many businesses and the economy. Most small businesses can write off the entire cost of qualifying equipment on the 2025 tax return, up to $1,220,000.1
2025 Section 179 Limits
Section 179 includes limits -- capping the total amount written off and total equipment amounts purchased. These spending caps are tailored for small businesses.
For 2025, Section 179 caps are:
- 2025 Deduction Limit: $1,220,0001
- Valid on new and used equipment (must be new to buyer), either purchased or leased.
- 2025 Spending Cap: $3,050,0001
- Upon reaching this spending threshold, the maximum deduction you qualify for is reduced on a dollar-for-dollar basis.
- 2025 Bonus Depreciation: 60%1
- This tax benefit enables a business to deduct a substantial percentage of the purchase price of qualifying assets immediately. It's typically claimed after the Spending Cap is achieved.
Section 179 Qualifications
All businesses purchasing, financing or leasing a new Ford or used business equipment in the 2025 tax year can access Section 179 tax savings, provided vehicles are used by December 31, 2025.1
Vehicles qualifying for Section 179 tax savings encompass work-centric vehicles typically used for specific purposes. Even traditional passenger vehicles can qualify for partial deductions if used for business at least 50% of the time.1
Ford commercial and passenger vehicles that qualify for Section 179 benefits include:
- Ford F-150
- Ford Super Duty®
- Ford Transit Cargo Van
- Ford Transit Passenger Wagon
- Ford Expedition
- Ford Explorer
- Other Ford trucks, vans and SUVs
Commercial Ford Sales in Ellisville, MO
Whether you have queries on the tax benefits of purchasing an F-250 or need details about Ford Explorer Section 179 qualification, the team at Bo Beuckman Ford is ready to help. Contact us to speak with our auto financing experts about Section 179 tax limits and qualifications, then shop our lineup to find the right commercial truck or pre-owned van for your company.
Read More: New Ford Specials | Ford Finance Center
1 Information accurate as of publishing date. Please consult https://www.section179.org for the most up-to-date details.