Business Tax Credit

Tax Credits For Business Vehicles

Maximize your tax deductions when you purchase a vehicle for your business at Mendota Chevrolet! 

Section 179 allows businesses to deduct a substantial portion of the purchase price of qualifying vehicles. And there's no limit to the number of vehicles you can deduct! Whether you need one work truck or an entire fleet, we can help you find the right Chevy and unlock valuable tax savings.
Section 179 Tax Deductions on Vehicle Purchases

Section 179 of the IRS tax code details both what and how much businesses can deduct from their taxes from qualifying purchases. This deduction applies to the purchase of business-use vehicles. The deduction amount varies depending on the size of the vehicle. Qualifying passenger vehicles are eligible for a fixed deduction (up to $18,200 per vehicle for 2023), while larger vehicles can qualify for a deduction of up to 100% of the purchase price.

Vehicles Qualifying for Full Section 179 Deduction

Many "work vehicles" typically qualify for a full Section 179 deduction. These include:

  • Vehicles that can seat nine-plus passengers behind the driver's seat (e.g., hotel/airport shuttle vans).
  • Classic cargo vans with:
  • A fully-enclosed driver's compartment/cargo area
  • No seating behind the driver's seat
  • No body section protruding more than 30 inches ahead of the windshield
  • Heavy construction equipment, forklifts, and similar vehicles.
  • Over-the-road tractor-trailers.
For passenger vehicles, trucks, and vans not meeting the above criteria, the Section 179 deduction is limited to $18,200 per vehicle if used more than 50% for business purposes.

Exceptions to Passenger Vehicle Limits

The following vehicles may qualify for a full deduction even if they don't meet the criteria for work vehicles:

  • Ambulances or hearses used specifically in your business.
  • Taxis, transport vans, and other vehicles used specifically to transport people or property for hire.
  • Qualified non-personal use vehicles specifically modified for business (e.g., a work van without seating behind the driver, with permanent shelving installed and the exterior painted with the company's name).
  • Heavy "non-SUV" vehicles and trucks with a cargo area at least six feet in interior length, not easily accessible from the passenger area. Many pickups with full-sized cargo beds may qualify, but some "extended cab" pickups may not.
First year vehicle depreciation limits for 2023
Up to 100% of purchase price (no per-vehicle or aggregate limitation)

Up to $25,000 plus up to 80% of the remaining purchase price
(plus standard depreciation deduction)
  • Express Cargo Van
  • Express Cutaway
  • Express Passenger Van
  • Low Cab Forward
  • Silverado 1500*
  • Silverado 2500 HD
  • Silverado 3500 HD
  • Silverado 4500 HD
  • Silverado 5500 HD
  • Silverado 6500 HD
  • Silverado HD Chassis Cabs
  • Blazer
  • Colorado
  • Express Passenger Van
  • Silverado 1500
  • Suburban
  • Tahoe
  • Traverse
Important Notes

The IRS regularly updates these rules and limits, so it's essential to check with the IRS or a tax professional for the latest information.
The vehicle must be used more than 50% for business purposes to qualify for any Section 179 deduction.

Disclaimer: This information is intended for general guidance only and does not constitute professional tax advice. Please consult with a qualified tax professional for advice regarding your specific situation.