Section 179 Tax Savings Illinois
Section 179 Tax Savings for Commercial Vehicles in Illinois and Missouri
When you purchase an eligible vehicle from our new inventory or an eligible used Ford, GMC, Chrysler, Dodge, Jeep, or Ram vehicle at our dealership, and use it for business purposes, you can deduct up to 100 percent of the amount you spend on your 2025 tax return. As part of the One Big Beautiful Bill Act of 2025, you can get a great tax break for a business-related vehicle, whether it's a heavy-duty truck, a cargo van, or a large SUV or sedan.
You can now get a full business tax deduction in a single year
Thanks to the Section 179 deductions, you may be able to deduct the entire cost of a new or used vehicle when you use it for business purposes and take it as an immediate deduction. Business owners from Nashville, IL can deduct that expense based on the vehicle's business use percentage. You are allowed up to a 100 percent tax deduction and don't have to take smaller deductions over a period of years. The new tax law for 2025 raises the deduction limit to $2.5 million, and the phase-out threshold rises to $4 million.
How to determine your section 179 tax deduction
The vehicle you buy must be used more than 50 percent of the time for business purposes to qualify for a Section 179 tax deduction. All St. Louis, MO business owners have to do is multiply the cost of their new or used eligible vehicle by the percent of business use to calculate the amount eligible for a Section 179 deduction. For example, if O'Fallon, IL business owners use a new Ford cargo van or a Ram heavy-duty truck for business purposes 60 percent of the time, they can deduct 60 percent of the price when they do their 2025 taxes in 2026.
A vehicle must weigh over 6000 pounds to be eligible
A general rule for Highland, IL business owners to remember is that Section 179 deductions for tax year 2025 are allowed exclusively for vehicles weighing more than 6,000 pounds. That would include heavy-duty pickups, SUVs, and cargo vans from trusted brands like Ford and Ram. We can tell you more when you contact us at Holzhauer Auto & Motorsports Group in Nashville, IL.