Section 179 Tax Deduction for Business Owners in Texas

Don Hewlett Chevrolet wants you to get all the tax deductions you qualify for. Write-off the price of any business vehicle you buy from us. Keep reading to learn more.

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SECTION 179 TAX DEDUCTIONS ON BUSINESS VEHICLE PURCHASES

Section 179 of the IRS tax code details both what and how much businesses can deduct from their taxes from qualifying purchases. This deduction applies to the purchase of business-use vehicles. The deduction amount varies depending on the size of the vehicle. Qualifying passenger vehicles are eligible for a fixed deduction (up to $18,200 per vehicle for 2024), while larger vehicles can qualify for a deduction of up to 100% of the purchase price. Just use the links below to learn more about your potential tax savings.

IRS Guidelines On Depreciation

Section 179 and Vehicle Purchases

WHAT BUSINESS VEHICLES QUALIFY FOR THE FULL SECTION 179 DEDUCTION?

Note that because many vehicles can serve business and personal function both, the rules for business vehicle deductions are always evolving, and can be complicated. It’s easier to list the typical vehicles that will generally qualify for a full section 179 deduction, and then discuss the rules for other vehicles. Many “work vehicles” that, by their nature, are not likely to be used for personal purposes will usually always qualify for full Section 179 deduction. This includes the following vehicles:

Vehicles that can seat nine-plus passengers behind the driver’s seat (i.e.: Hotel / Airport shuttle vans, etc.).
Vehicles with:
(1) a fully-enclosed driver’s compartment / cargo area,
(2) no seating at all behind the driver’s seat, and
(3) no body section protruding more than 30 inches ahead of the leading edge of the windshield. In other words, a classic cargo van.
Heavy construction equipment will qualify for the Section 179 deduction, as will forklifts and similar.
Typical “over-the-road” Tractor Trailers will qualify.

WHAT ARE THE LIMITS ON TYPICAL PASSENGER VEHICLES USED FOR BUSINESS?

For passenger vehicles, trucks, and vans (not meeting the guidelines below), that are used more than 50% in a qualified business use, the total deduction is limited to up to $18,200 per vehicle. Exceptions include the following vehicles:

Ambulance or hearses used specifically in your business
Taxis, transport vans, and other vehicles used to specifically transport people or property for hire.
Qualified non-personal use vehicles specifically modified for business (e.g. work van without seating behind driver, permanent shelving installed, and exterior painted with company’s name)
Other heavy “non-SUV” vehicles and trucks with a cargo area at least six feet in interior length (this area must not be easily accessible from the passenger area.) To give an example, many pickups with full-sized cargo beds will qualify for a full deduction (although some “extended cab” pickups may have beds that are too small to qualify).

2024 ELIGIBLE VEHICLES

UP TO 60% OF PURCHASE PRICE*

Large trucks, cargo vans and 10+ passenger vans - GVWR greater than 6,000 lbs.

Express Cargo Van
Express Cutaway
Express Passenger Van
Low Cab Forward
Silverado 1500
Silverado 2500 HD
Silverado 3500 HD
Silverado 4500 HD
Silverado 5500 HD
Silverado 6500 HD
Silverado HD Chassis Cabs

UP TO $25,000 PLUS UP TO 80% OF THE REMAINING PURCHASE PRICE

PLUS STANDARD DEPRECIATION DEDUCTION*

Other trucks, passenger vans and SUVs - GVWR greater than 6,000 lbs.

Blazer
Colorado
Express Passenger Van
Silverado 1500
Suburban
Tahoe
Traverse

UP TO $20,200

All vehicles - GVWR 6,000 lbs. or less.

Bolt EUV
Camaro
Colorado
Corvette
Equinox
Malibu
Trailblazer
Trax

Each purchaser’s tax situation is unique and the available tax benefits and the applicable federal tax laws, regulations and guidelines are subject to change without notice. Therefore, customers must consult their tax advisor to determine the proper tax treatment of any vehicle purchase(s). For more information, visit www.irs.gov. This advertisement is for informational purposes only and should not be construed as tax advice or as a promise of availability or amount of any potential tax benefit or reduced tax liability.