Are you looking to expand your business fleet and take your operations to the next level? Turn to Plaza Ford. We have a wide selection of commercial Ford trucks and vans as well as traditional passenger vehicles that can be put to business use. And, best of all, many of these vehicles are eligible for the Section 179 tax deduction!
What's Section 179? It's a tax code that was created by the IRS as a way of helping small businesses invest in themselves. Section 179 allows companies to write off the costs of qualifying vehicles, so long as they are used for business purposes at least 50% of the time. In order to claim this exciting vehicle tax deduction, you must purchase your vehicles and put them into service by December 31, 20251 -- so hurry into our Ford dealership near Bel Air South and get the process started!
What Ford Models Are Eligible for 2025 Section 179 Tax Savings?
Section 179 of the IRS tax code allows businesses to deduct the price of qualifying equipment, such as vehicles purchased or financed during the tax year. The IRS breaks down the list of vehicles that qualify for Section 179 deduction into three primary groups: Light, Heavy and Other.
Let's look at the "Heavy" category of vehicles, which are defined as vehicles with a GVWR (gross vehicle weight rating) over 6,000 pounds, but not more than 14,000 pounds. For 2025, Section 179 allows for a maximum depreciation of $31,300 in the current tax year for these "Heavy" vehicles.1 These vehicles must be put into service by the end of the year, as well as meet the following conditions:
- Both new and used vehicles apply. However, the vehicle must be financed with qualified loans and leases and the title of the vehicle must be in the company's name and not in the name of the company owner.
- The vehicle should be used for business purposes at least 50% of the time. If the vehicle is not used completely for business purposes 100% of the time, then there is a reduction of depreciation limits by the corresponding percentage of personal usage.
- You can claim the Section 179 deduction only in the tax year in which the vehicle has been put into service, i.e. when the vehicle is ready and available.
- A vehicle that has been used for personal purposes first does not qualify for the Section 179 deduction if its purpose is changed to business use in a later year.
- Note: Individual tax situations may vary. Please consult your tax advisor for complete details on rules applicable to your business.
Vehicles with a GVWR under 6,000 pounds may also qualify for a smaller deduction when used for business purposes at least 50% of the time.1
What Is Section 168(k)?
Section 168(k) is a tax provision that allows for additional "Bonus Depreciation." The Bonus Depreciation this year amounts to 100% of the purchase price of the vehicle through the end of 2025, which when added to the $31,300 from Section 179, can potentially fully depreciate many vehicle purchases in the first year or two (instead of depreciating the purchase over five years or more.)1
In 2025, the allowable Bonus Depreciation percentage increased to 100%, meaning this tax benefit is more valuable than in years past.
What Ford Vehicles Are Eligible for Section 179?
The following Ford trucks and SUVs qualify for the "Heavy" Section 179 deduction, and Section 168(k) Bonus Depreciation:1
These are just a few of the Ford models that are eligible for the Section 179 tax deduction. To learn which Ford passenger vehicles qualify for this IRS tax code, contact Plaza Ford.
Here's a breakdown of vehicles that may qualify for Section 179 tax savings by weight:1
| Make | Model | Approx GVWR (lbs) |
|---|---|---|
| Ford | Expedition | 7,450 |
| Ford | Expedition MAX | 7,700 |
| Ford | F-250 Super Duty® | 10,000 |
| Ford | F-350 Super Duty® | 14,000 |
| Ford | F-450 Super Duty® | 16,500 |
| Ford | F-550 Super Duty® | 19,500 |
| Ford | Transit Cargo Van T-250 HD | 9,070 |
| Ford | Transit Cargo Van T-350 HD | 10,360 |
| Ford | Transit Passenger Wagon | 10,360 |
What Are the Section 179 Tax Deduction Limits for 2025?
Businesses can write off up to $2,500,000 for the 2025 tax year with a spending cap of $4,000,000.1 After a business has surpassed this amount, the Section 179 deduction will decrease. So, this automotive tax code is best used by small- and medium-sized businesses. Bonus Depreciation for 2025 is 100%. If you have any questions about the Section 179 limits and amounts, be sure to reach out to a tax expert or the Plaza Ford finance team.
Commercial Ford Sales Near Me
Browse our new Ford commercial inventory online, then head to our Maryland Ford dealer to find out how you can expand your Ford fleet and write off the costs. Our Ford sales team will be happy to answer any questions and take you through all the details. Buy a new Ford F-150 or Super Duty® truck near Bel Air South today!
Read More:First-Time Car Buyer Guide | Ford Courtesy Vehicles Program
1 Information accurate as of publishing date. Please consult https://www.section179.org for the most up-to-date details.