Section 179 Tax Benefit
Deduct up to $30,500*
If your business requires vehicles for its day-to-day operations, then you’re in luck! The Section 179 Tax Benefit allows you to recoup the full or partial cost of qualifying new or pre-owned vehicles. Businesses of all sizes can now use the Section 179 Tax Benefit— but you cannot claim the benefit unless the vehicle you’ve purchased meets strict qualifications, or is used for business purposes at least 50% of the time. Let’s take a closer look at what this means in practice.
You May Qualify If You:
- Are a business that purchased or financed qualifying new or used business equipment, including certain business-use vehicles, during the 2024 tax year.
- Put the equipment into service between January 1, 2024, and December 31, 2024.
- Used this equipment for business purposes more than 50% of the time.
- Spent less than $2,890,000 on this equipment.
What is the Section 179 Tax Benefit?
Businesses need to spend in order to grow, and the Section 179 Tax Benefit was designed to make it easier for small and medium-sized businesses to expand their operations. Today, however, businesses of all sizes can benefit from this tax reduction program.
In essence, the benefit allows businesses to claim a tax reduction of up to $1,220,000— depending on the number and type of vehicles that have been purchased. Keep in mind that while this number holds true for tax-year 2024, it varies from year to year.
As we mentioned from the outset, any vehicle that is used for business purposes at least 50% of the time can be qualified as a commercial vehicle. With that said, you don’t necessarily have to calculate the usage of your vehicle in order to qualify. That’s because the following options are automatically classed as commercial vehicles for tax purposes:
- Vehicles that can seat more than nine passengers
- Vehicles with a fully-enclosed driver’s compartment, and a cargo area without seating behind the driver’s seat
- Heavy, non-SUV vehicles that have a cargo area with a minimum length of 6 feet
- Taxis and other transportation vehicles
- Hearses and ambulances
- Vehicles that have been customized or upfitted for business purposes
Remember, this list is designed to get you started! It isn’t a substitute for the advice of a financial professional. If you have questions about qualifying for the Section 179 Tax Benefit, we encourage you to reach out to our team.
Mercedes-Benz Commercial Vehicles
Businesses have many different needs, and virtually all of our vehicles have been used as commercial vehicles at one point or another. With that said, when most Danville and Sunol shoppers think of Mercedes-Benz commercial vehicles, they think of two models in particular:
- The Mercedes-Benz Sprinter is a capable van with a segment-leading service interval and top-tier technology features. It’s available as a cargo van, a passenger van, or in a variety of other configurations.
- If the Sprinter doesn’t feel like a perfect fit, there’s the smaller Mercedes-Benz Metris. Since it shares many advantages with the Sprinter, it’s a great choice for any growing San Ramon-area business.
Take the Next Steps with Mercedes-Benz of Pleasanton
If you’re ready to take advantage of the Section 179 Tax Benefit, don’t wait to get in touch. Our financing experts are here to help you take the next steps with confidence.
*$5,502 tax savings based on 21% federal corporate tax rate and eligibility to claim full $30,500 IRS Section 179 tax deduction for qualified vehicles. Your tax rate and eligibility may vary. Please consult a tax professional for more information on your federal tax rate and potential tax savings available to you for qualifying purchases. This information does not constitute, nor is it intended to be, legal, tax, financial planning or investment advice and should not be relied upon as much.
**$30,500 tax deduction for qualifying vehicles based on current Section 179 of U.S. tax code and maximum deduction permitted for such vehicles under Section 179. Vehicles must be purchased for business use. Please consult your tax advisor. This information does not constitute, nor is it intended to be, legal, tax, financial planning or investment advice and should not be relied upon as such.
Offer valid through December 31, 2024. For more details, visit www.irs.gov