2025 Section 179 Tax Deduction
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At Star Ford of Big Spring we make it a point to ensure that our customer satisfaction is a top priority! Beyond our incredible inventory and professional service center, we always want to make sure folks are informed on all the ways they can save. And, when it comes to commercial vehicles, there are some great options. Read below all about the Section 179 tax deduction and how it works. Then, if you are ready to find the perfect vehicle for your business, check out our inventory online, or visit our showroom. Serving the greater Big Spring and Midland TX area, Star Ford of Big Spring is your source for all things Ford Commercial vehicle related!
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 .
Quick Reference: 2025 Section 179 Limits
| Metric | Value / Notes |
|---|---|
| Max Deduction (2025) | $1,250,000 |
| Phase-Out Begins At | $3,130,000 in total equipment purchases |
| Bonus Depreciation (2025) | 40% (applied after Section 179 limit is reached) |
| New & Used Equipment | Qualifies for full Section 179 deduction |
| Specialized (Non-Passenger) Vehicles | No special limit (treated like equipment) |
| SUVs & Trucks >6,000 lbs GVWR | $31,300 max first-year Section 179 (remainder depreciated) |
| Business-Use Requirement | >50% business use; deduction limited to % of business use |
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.
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.
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.
Which Ford Vehicles Qualify?
At Star Ford 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:
- Ford F-150
- Ford Super Duty
- Ford Chassis Cabs
- Ford Transit
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
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.
Real-World Example: Business Tax Savings in Action
Let’s say your business purchases a Ford Super Duty 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.
Invest in Your Business & Save on Taxes with Star Ford of Big Spring
As one of the leading Ford dealerships in the greater West Texas region, we carry a wide selection of Section 179-eligible work trucks, vans, and commercial vehicles. Our team can help you navigate your purchase with tax-saving strategies in mind and connect you with financing options that make sense for your business.
We’re proud to serve commercial customers.
Start Preparing for Year-End Tax Benefits Today
Explore our commercial inventory, speak with a knowledgeable sales consultant, and get on the road to serious tax savings.
Questions about vehicle eligibility or business use requirements? Contact our team today for personalized support.