Section 179 Deduction Vehicle List 2024

Section 179 Deduction

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Many of us make a significant financial commitment in our lives when we purchase a car. You use your car a lot: commuting to work, driving the kids to school or soccer practice, running errands, and going on weekend excursions.

Your vehicles accompany us through the happiest and busiest seasons of our lives, which is why some people get creative with bobbleheads and tassels! However, it’s understandable that all of these fees pile up.

Fortunately, there is a way to recoup some of your investment: Section 179 of the IRS permits business owners to deduct the whole purchase price of eligible equipment as an expense when the properties are put into service.

Check out the Section 179 Deduction Vehicle List 2024 to start saving money and reducing your bills immediately!

Key Takeaways

  • Qualifying vehicles must be more than 50% of the vehicle’s use for business purposes.
  • The ever-popular Section 179 expensing option increases to $1.2 million for 2024 for farmers and other small businesses that buy under $3,050,000 in total equipment.
  • Section 179 applies to business assets with a depreciation schedule that is less than 20 years.
  • The 179 deduction gets reduced for every dollar spent over that $3.05 million cap.

Understanding Section 179 Deduction

The IRS tax code has traditionally allowed businesses to claim deductions for tangible personal property used for commercial purposes. The most typical examples include computers, office furniture, and other items needed in your daily operations.

The ever-popular Section 179 expensing option increases to $1.2 million for 2024 for farmers and other small businesses that buy under $3,050,000 in total equipment.

However, it’s critical to note that this deduction begins to phase out once the full cost of all qualifying equipment purchased surpasses a specific limit – $3.05M for the tax year 2023.

This is an essential point of consideration for the small business owner, as understanding the amount you can claim and what vehicles are eligible for deduction is crucial to optimize your tax return.

Vehicle Qualifications for Section 179 Deduction in 2024

Beginning in 2024, businesses will be able to acquire a variety of vehicles that qualify for Section 179 Deductions, including automobiles, pickup trucks, and SUVs.

  • Heavy Vehicle: Vehicles used in business more than 50% of the time with a Gross Vehicle Weight Rating between 6,000 lbs. and 14,000 lbs.
  • Small Vehicle: Vehicles used in business more than 50% of the time with a Gross Vehicle Weight Rating lower than 6,000 lbs.

In addition, the IRS also specifies specific rules about passenger capacity and other specifications to which vehicles must adhere to qualify:

  • Specifically engineered to accommodate a minimum of ten passengers, excluding the driver’s seat.
  • The cargo room can be open or covered with a cap, has an internal length of at least 6 feet, and is not easily accessible from the seating area.
  • Constructed with a unitary enclosure that entirely surrounds both the driver’s compartment and the cargo-holding system, with no seating behind the driver’s area and no body component extending more than 30 inches beyond the leading edge of the windshield.

Furthermore, business owners understand these conditions before making a purchase, so they know they will save the maximum money come tax season.

Gross vehicle weight rating

Simply defined, this decides whether a vehicle is classified as “light duty” or “heavy duty,” with light duty being exempt from constraints (as long as other eligibility standards are met).

Section 179 Cars

While there are certain restrictions (particularly, a passenger van, pickup, or panel vehicle built for more than nine people), the majority of cars qualify for this deduction.

Small business owners can save on luxury models like BMWs and Cadillacs without worrying about depreciation over time.

SUVs

SUVs are another popular way to take advantage of the Section 179 deduction. Other vehicles are subject to similar regulations, but they must meet particular conditions to be eligible for this tax benefit (an SUV’s GVWR must be 6,000 pounds or higher).

However, larger model SUVs tend to exceed this limit, so those looking for the most significant savings may consider a smaller crossover or light-duty full-size model instead.

Other vehicles

Aside from cars and SUVs, other vehicles qualify under Section 179 Deductions, such as cargo vans and buses with seating no more than nine passengers.

As always, these eligible vehicles must meet all requirements specified by the IRS for business owners to take advantage of this business deduction.

That said if you’re in the market for one of these types of qualifying vehicles before committing to a purchase.

May Truck Models Qualify For Section 179 Deduction 2024?

Suppose you’re considering buying a truck for your tow truck enterprise. In that case, you might be wondering if any of the models exceeding 6,000 pounds in gross vehicle weight rating (GVWR) qualify for a Section 179 deduction in 2024. The good news is that some trucks listed below might be eligible for the deduction, which could help reduce your taxable income.

Eligible Vehicles EV deduction 2024

The List of Qualifying Truck Models For Section 179 Deduction

MAKE MODEL APPROX GVW (LBS)
Audi Q7 6,900
Audi SQ7 6,900
Audi Q8 6,900
Audi SQ8 6,900
BMW X5 xDrive45e 7,165
BMW X6 M50i 6,063
BMW X7 xDrive40i 7,143
BMW X7 M50i 7,143
BMW X7 M50d 7,143
Bentley Bentayga 7,275
Bentley Bentayga Hybrid 7,165
Bentley Bentayga Speed 7,275
Bentley Flying Spur 6,724
Bentley Flying Spur V8 6,724
Bentley Flying Spur W12 6,724
Bentley Mulsanne 6,173
Bentley Mulsanne Speed 6,173
Bentley Mulsanne Extended 6,617
Buick Enclave Avenir AWD 6,160
Buick Enclave Avenir FWD 6,055
Buick Enclave Essence AWD 6,160
Buick Enclave Essence FWD 6,055
Cadillac Escalade 7,100
Cadillac Escalade ESV 7,300
Cadillac Escalade Platinum 7,100
Cadillac Escalade ESV Platinum 7,300
Chevrolet Silverado 2500HD 10,000
Chevrolet Silverado 3500HD 14,000
Chevrolet Silverado 4500HD 16,500
Chevrolet Silverado 5500HD 19,500
Chevrolet Silverado 6500HD 23,500
Chevrolet Express Cargo Van 2500 8,600
Chevrolet Express Cargo Van 3500 9,900
Chevrolet Express Passenger Van 9,600
Chevrolet Suburban 7,800
Chevrolet Tahoe 7,400
Chevrolet Traverse 6,160
Chrysler Pacifica 6,055
Dodge Durango 6,500
Dodge Durango SRT 6,500
Dodge Durango Citadel 6,500
Dodge Durango R/T 6,500
Dodge Durango GT 6,500
Dodge Durango SXT 6,500
Dodge Grand Caravan 6,055
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
GMC Sierra 2500HD 10,000
GMC Sierra 3500HD 14,000
GMC Sierra 3500HD Denali 14,000
GMC Sierra 4500HD 16,500
GMC Sierra 5500HD 19,500
GMC Sierra 6500HD 22,900
GMC Yukon 7,300
GMC Yukon XL 7,800
Honda Odyssey 6,019
Infiniti QX80 7,385
Jeep Grand Cherokee 6,500
Jeep Grand Cherokee SRT 6,500
Jeep Grand Cherokee L 6,500
Jeep Wrangler Unlimited 6,500
Jeep Gladiator Rubicon 6,250
Land Rover Defender 110 7,165
Land Rover Defender 90 7,055
Land Rover Discovery 7,165
Land Rover Discovery Sport 6,724
Land Rover Range Rover 7,165
Land Rover Range Rover Sport 7,165
Land Rover Range Rover Velar 6,724
Land Rover Range Rover Evoque 6,724
Land Rover Range Rover Evoque R-Dynamic 6,724
Lexus LX 570 7,000
Lincoln Aviator 6,001
Lincoln Aviator 6,001
Lincoln Navigator 7,200
Mercedes-Benz GLS 580 4MATIC 6,768
Mercedes-Benz GLS 600 4MATIC 6,768
Mercedes-Benz G 550 4×4 Squared 7,057
Mercedes-Benz GLS 580 4MATIC 6,768
Mercedes-Benz GLS 600 4MATIC 6,768
Mercedes-Benz AMG G 63 4MATIC SUV 6,724
Nissan Armada 2WD/4WD 7,300
Nissan NV 1500 S V6 8,550
Nissan NVP 3500 S V6 9,100
Nissan Titan 2WD S 7,300
Porsche Cayenne Turbo Coupe 6,173
Porsche Cayenne Turbo S E-Hybrid Coupe 6,173
Porsche Cayenne Turbo S E-Hybrid 6,173
Porsche Panamera Turbo S E-Hybrid 6,244
Tesla Model X 6,000
Toyota Tundra 2WD/4WD 6,800
Toyota 4Runner 2WD/4WD LTD 6,300
Toyota Tundra 2WD/4WD 6,800

DISCLAIMER: The information on this list is derived from official car manufacturer websites, government databases, and automotive review websites and may be inaccurate. Vehicle weights can vary depending on model year and setup, and numerous weight classifications may apply. The mentioned weights are for basic configurations and should only be used as estimations, as actual GVW may vary depending on engine size, trim level, towing package, and other considerations. We are not liable for any errors or inaccuracies in the information supplied, and you assume all risk when using it. Check the driver’s door to ensure that a vehicle’s GVWR is greater than 6,000 pounds. Consult a certified professional for precise GVW information for a specific vehicle.

Used EVs now eligible

One of the most contentious issues with the older version of the EV tax credit was its exclusion of used cars. The IRA remedies this. Beginning in 2023, qualifying used EV purchases can fetch taxpayers a credit of up to $4,000, limited to 30% of the car’s purchase price.

Some other qualifications:

  • Used car must be plug-in electric or fuel cell with at least 7 kilowatt hours of battery capacity.
  • Only qualifies for the first transfer of a vehicle.
  • Purchase price of car must be $25,000 or less.
  • Car model must be at least two years old.
  • Vehicle must weigh less than 14,000 pounds.
  • Credit can only be claimed once every three years.

Used EVs now eligible

Additional Benefits: Special Bonus Depreciation

Business owners can take advantage of the special bonus depreciation rules after claiming section 179 deductions for vehicles to reduce their taxable income further. Businesses can unlock additional savings with special bonus depreciation – which ramps down to 60% in 2024.

This depreciation allows for a dollar-for-dollar deduction of new and used business equipment purchases, providing an additional benefit to the Section 179 Deduction.

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