Section 179 Tax Deduction

Star Chrysler Dodge Jeep Ram of Big Spring is Your Commercial Truck HQ of West TX!

Star CDJR of Big Spring is pleased to welcome commercial vehicle customers from the greater Big Spring, Midland, Colorado City, San Angelo, Odessa areas, and beyond. We are pleased to always be there to help educate folks in their car buying journey, including all the ways they can save! When it comes to commercial purchases, there are some great tax incentives you may be able to take advantage of. Check out the details below and please give us a call if you still have questions! 

Claim Major Tax Savings on Work-Ready Vehicles

Looking to reduce your business’s taxable income while upgrading to a dependable commercial vehicle? The 2025 Section 179 tax deduction offers a valuable opportunity for businesses .

What Is Section 179 and How Does It Work?

Section 179 is a business-friendly IRS tax code that allows you to deduct the full purchase price of eligible equipment and vehicles—rather than depreciating them over several years. As long as the vehicle is purchased, financed, or leased and put into service by December 31, 2025, it may qualify for a same-year deduction.

This incentive is especially helpful for small to mid-size businesses that need to invest in dependable transportation while minimizing year-end tax liabilities.

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2025 Section 179 Deduction Limits & Bonus Depreciation

For tax year 2025, the limits are as follows:

• Maximum Deduction: $1,250,000
• Phase-Out Begins At: $3,130,000 in total equipment purchases
• Total Cap for Purchases: $4,380,000
• Bonus Depreciation: 40% (applied after Section 179 limit is reached)
• SUV Deduction Cap: $31,300 (for vehicles between 6,000 and 14,000 lbs GVWR)

These updated thresholds allow businesses to deduct a significant portion of their investments while staying within IRS guidelines.

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How Do Section 179 Limits and Phase-Outs Affect Your Deduction?

The amount you can deduct is directly tied to your overall business spending:

• If you purchase less than $3,130,000 in qualifying vehicles/equipment, you may deduct up to $1,250,000.
• If your purchases exceed that, the deduction is reduced dollar-for-dollar.
• If you go beyond $4,380,000 in purchases, the Section 179 deduction is phased out entirely for the year.
• These updated thresholds allow businesses to deduct a significant portion of their investments while staying within IRS guidelines.

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Which Chrysler, Dodge, Jeep, and Ram Vehicles Qualify?

At Star Chrysler Dodge Jeep Ram of Big Spring, we carry a range of heavy-duty trucks and commercial-ready vehicles that meet Section 179’s eligibility requirements based on GVWR and business use.

Eligible vehicles may include:

• Ram 1500, 2500, and 3500 trucks
• Ram ProMaster Vans
• Dodge Durango (partial deduction depending on use and weight)
• Jeep Grand Cherokee (GVWR and business use determine eligibility)

Qualification Criteria

To qualify for the Section 179 deduction, vehicles must be:

• Used for business purposes more than 50% of the time
• Purchased and placed into service before December 31, 2025
• Meet IRS weight and use requirements

Inventory / Shop Links

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Are There Limitations or Carryover Options?

Section 179 is limited by your taxable income—meaning your deduction cannot exceed your business’s net profit. If your deduction is capped, you may be able to carry over the remaining amount to future tax years. Additionally, bonus depreciation can be used to deduct any remaining cost beyond the Section 179 limits.

This incentive is especially helpful for small to mid-size businesses that need to invest in dependable transportation while minimizing year-end tax liabilities.

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Real-World Example: Business Tax Savings in Action

Let’s say your business purchases a Ram 2500 Tradesman at a cost of $68,000. The vehicle is used 100% for work and placed into service in 2025.

• Section 179 Deduction: $68,000
• Estimated Tax Rate: 35%
• Approximate Tax Savings: $23,800

That’s nearly $24,000 in tax savings—simply by using Section 179 to deduct the cost of a vehicle you’re already planning to buy.

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