Write Off Your Business Vehicle On This Year's Taxes With The Section 179 Tax Deduction
For small- and medium-sized business owners, the Section 179 tax deduction can offer substantial savings on commercial vehicle purchases. But what is Section 179? This tax code was created by the U.S. government to support small businesses by encouraging investments in their operations. With this tax incentive, businesses can potentially write off up to 100% of the costs related to purchasing vehicles for business use.1
To explore which vehicles are eligible for Section 179 tax write-offs, get in touch with the informed team at our Buick and GMC dealership near Radnor. We're here to provide all the information and assistance you need.
How Does Section 179 Work?
The Section 179 tax deduction offers savings on both new GMC and Buick models, as well as used vehicles. A critical requirement is that the vehicle is new to your business and has been purchased and put into service within the current tax year. Many work-oriented vehicles like cargo vans, shuttle vans and heavy equipment typically qualify for the full deduction, provided they are primarily used for business purposes.
On the other hand, passenger vehicles may be eligible for partial deductions based on their type and weight. In 2023, trucks and heavy SUVs with a Gross Vehicle Weight Rating (GVWR) between 6,000 and 14,000 pounds could potentially qualify for a partial deduction if they are used for business purposes over 50% of the time. This offers an excellent opportunity to save on vehicles that fulfill both your personal and business needs.
Eligible GMC Vehicles for Section 179 Tax Savings
The following new or used GMC vehicles are eligible for partial or full Section 179 deductions:
Up to 100% of Purchase Price
- Sierra 1500/2500/3500
(Standard & Long Bed) - Sierra 3500 HD Chassis Cab
- Savana Cargo Van
- Savana Passenger Van
(10+ passenger seating only) - Savana Cutaway
Up to $25,000 (Plus up to 80% of the remaining purchase price plus standard depreciation deduction)
- Sierra 1500 (Short Bed)
- Yukon
- Yukon XL
- Acadia
- HUMMER EV Pickup
- HUMMER EV SUV
- Canyon
- Savana Passenger Van
(all except 10+ passenger seating)
Up to $20,200
- Terrain
Eligible Buick Models for Section 179 Deductions
The following new or used Buick vehicles are eligible for partial Section 179 tax deductions:
Up to $25,000 (Plus up to 80% of the remaining purchase price plus standard depreciation deduction)
- Enclave
- Enclave Avenir
Up to $20,200
- Encore GX
- Envision
- Envision Avenir
More Section 179 Details & Info
To make the most of the incentives available in the current tax year, ensure that your company's vehicles are purchased and put into service no later than December 31, 2023. This deadline is crucial to qualifying for the incentives offered. If you have any questions regarding which GM vehicles qualify for Section 179 or if you're interested in learning more about Bonus Depreciation, please contact Hill Buick GMC. Our team is excited to help your business grow with a fleet of GMC and Buick models!
1 Information accurate at time of publishing. For more details, please visit www.section179.org.