Section 179 Tax Benefits
Understanding 2025 Section 179 Tax Benefits at Dependable Chrysler Dodge Jeep Ram
Helping Canoga Park Businesses Save Through Smarter Vehicle Investments
The Section 179 tax deduction remains one of the most valuable incentives available to business owners, and the 2025 tax year continues to offer major opportunities. At Dependable Chrysler Dodge Jeep Ram, we help businesses of every size maximize their investment by taking advantage of Section 179.
What Is Section 179?
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying vehicles and equipment bought or financed during the tax year, rather than depreciating them over several years. It's a government-backed incentive designed to encourage investment in business assets.
For 2025, the maximum deduction limit under Section 179 is $1,220,000, with a spending cap of $3,050,000. This means that businesses can deduct up to that amount in equipment purchases before the deduction begins to phase out dollar-for-dollar. When combined with Bonus Depreciation, companies can potentially deduct 80% of the remaining value of qualifying purchases in the same year.
- Maximum 2025 deduction: $1,220,000
- Phase-out threshold: $3,050,000
- Bonus depreciation: 80% for 2025
What Vehicles Qualify for Section 179?
At Dependable Chrysler Dodge Jeep Ram, many of our commercial and heavy-duty vehicles qualify for Section 179 deductions, provided they are used more than 50% for business purposes. Vehicles must be purchased and put into service by December 31, 2025, to qualify for the current tax year.
- Ram 1500, 2500, and 3500: Full-size trucks often qualify for the maximum deduction when used for work-related purposes such as towing, hauling, or fleet operations.
- Ram ProMaster and ProMaster City: These commercial vans are designed for cargo transport, making them ideal Section 179-eligible vehicles for tradespeople, delivery companies, and contractors.
- Jeep Grand Cherokee and Wagoneer: Select configurations may qualify depending on Gross Vehicle Weight Rating (GVWR) and business usage.
- Chrysler Pacifica Hybrid: When configured for commercial or shuttle services, the Pacifica may also be eligible under the Section 179 guidelines.
The IRS typically categorizes vehicles weighing over 6,000 pounds GVWR as "heavy SUVs or trucks," which may qualify for the full deduction, while lighter vehicles used for business purposes qualify for partial deductions.
Benefits for Business Owners
Taking advantage of Section 179 allows companies to realize significant savings while expanding operational capability. Rather than spreading deductions across several years, business owners can offset much of their 2025 taxable income immediately, an advantage that directly supports cash flow and future growth.
- Immediate tax savings for 2025
- Improved business liquidity and reinvestment potential
- Ownership of a tangible, long-term asset
- Ability to combine with Bonus Depreciation for greater deductions
For many small to mid-sized businesses, this deduction can be the difference between maintaining growth momentum and delaying vital upgrades. Whether your operation depends on reliable transportation or efficient logistics, Section 179 helps make those investments financially smarter.
Take Advantage of Section 179 Before December 31, 2025
To qualify for Section 179 deductions, your vehicle must be purchased and placed in service by the end of the 2025 tax year. That means now is the time to plan ahead, evaluate your fleet, and take advantage of potential savings.
Contact Dependable Chrysler Dodge Jeep Ram today to speak with our commercial specialists and learn how Section 179 can work for your company.
Don't wait until year-end to make your move. With Section 179 and Dependable Chrysler Dodge Jeep Ram, your next vehicle purchase could do more than power your business; it could drive major savings when tax season arrives.