Westborough, MA

ford commercial vehicles

Section 179 Tax Reductions
Save a ton on commercial vehicles

If you’re considering purchasing a vehicle for your business, you could save by taking advantage of the 2018 Section 179 Vehicle Tax Deduction. Whether you’re going to purchase a new Ford-350 Super Duty truck for your construction company, a Ford Transit Connect van or even select Ford SUVs, the Section 179 Tax can help you save if you use your vehicle for business at least 50% of the time. Learn more about the latest Section 179 Tax Deduction rules here, then shop our new Ford inventory at our Ford dealership near Worcester, MA!

What Is the Section 179 Deduction?

The Section 179 tax deduction is an IRS tax code that allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year, within certain limits. Originally invented to benefit small businesses, the Section 179 Tax Deduction is a smart way for businesses of all sizes to save on the equipment they need, including cars, trucks, vans and SUVs.

Section 179 Deduction Vehicle Restrictions

If you’re purchasing a vehicle that will be used for business purposes at least 50% of the time, it may qualify for a Section 179 Deduction. Depending on the type of vehicle you purchase, the total amount you can deduct can vary.

Vehicles that may qualify for the full Section 179 Deduction can include:

  • Vehicles that can seat nine-plus passengers behind the driver’s seat
  • Vehicles with a fully enclosed driver’s compartment/cargo area and no seating behind the driver’s seat, such as a cargo van
  • Heavy construction equipment

Passenger vehicles that are used more than 50% in a qualified business setting can benefit from a Section 179 expense deduction as well as Bonus Depreciation limited to $11,160 for cars and $11,560 for trucks and vans. Exceptions can include:

  • Taxis, transport vans and other vehicles used specifically to transport people or property for hire
  • Qualified non-personal use vehicles that have been specifically modified for business, like a work van without seating behind the driver
  • Other heavy non-SUV vehicles and trucks with a cargo area at least six feet in interior length

Additionally, certain vehicles with gross vehicle weight ratings above 6,000 pounds, but not more than 14,000 pounds, can qualify for a deduction of up to $25,000 if the vehicle is purchased and placed in service prior to December 31.

Which Ford Vehicles Can Qualify for the Section 179 Deduction?

Please read the rules above and in more detail here to determine exactly which Ford vehicles are eligible for Section 179. However, some of our more popular vehicles that often qualify depending on their configurations include:

  • Ford F-150
  • Ford F-250
  • Ford F-350
  • Ford F-450
  • Ford Expedition EL
  • Ford Expedition
  • Ford Explorer
  • Ford Transit
  • Ford Transit Connect

To learn more about the Section 179 Tax Deduction and how you can benefit, talk to the experts at Herb Chambers Ford of Westborough today!

Contact Us