What Is the Section 179 Tax Incentive?

Section 179 is an IRS tax code designed to help small- and medium-sized businesses invest in their future. It allows the cost of qualifying business equipment -- such as commercial vehicles -- to be deducted immediately, rather than depreciated over several years.

If you use your truck, van or SUV for business purposes more than half the time, you may qualify for substantial first-year deductions. This incentive can help improve long-term productivity and make upgrading or expanding your fleet a smarter financial decision.

Swanty's Chrysler Dodge Jeep Ram works with local businesses to clarify eligibility and streamline the purchase process, ensuring you can make the most out of Section 179's benefits. In business since 1990, we're conveniently located near the California and Nevada borders, making us accessible for fleet operators throughout the region.

What Are the Section 179 Tax Deduction Limits for 2025?

With Section 179, companies can claim significant tax breaks through 2025. Here are the main figures to keep in mind:¹

• 2025 Deduction Limit: $2,500,000¹
  • Good on new and used equipment (as long as new to the buyer)
  • Purchased or leased

• 2025 Spending Cap: $4,000,000¹ -- This is the maximum amount that can be spent on equipment before the Section 179 deduction available to your company begins to be reduced on a dollar-for-dollar basis (making it a true small-business incentive)
  • Complete phase-out at $6,500,000

• 2025 Bonus Depreciation:¹ 100%
• Defined as: a tax incentive that allows a business to immediately deduct a large percentage of the purchase price of eligible assets
• Generally taken after the Spending Cap is reached
• Applies to new and used

• Additional Section 179 Requirements
  • Must be purchased and put into use before Dec 31, 2025¹
  • Must be used for business purposes more than 50% of the time
  • Must be titled in the company's name (not the company's owner's name)

Have questions about Jeep financing in Arizona or maximizing your company's deduction? Our commercial financing experts can answer any questions and match you with the best plan for you. Contact us to learn more.