Section 179 Tax Deduction
What Is Section 179?
Section 179 allows businesses to deduct the entire purchase price of qualifying new or used equipment and vehicles in the year they're placed in service, rather than spreading out depreciation over several years.
In short:
If you buy a qualifying commercial truck and start using it for business this year, you may be able to write off the full cost on your 2025 taxes.
Why Section 179 Matters
This tax incentive was designed to help small and mid-sized businesses reinvest in themselves by improving cash flow and lowering taxable income.
Key Benefits:
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Immediate tax relief - Deduct up to the full purchase price this year
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Improved cash flow - Keep more money in your business
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Supports growth - Upgrade or expand your fleet affordably
Which Vehicles Qualify?
Many commercial-use vehicles qualify for Section 179 deductions - especially those designed for heavy-duty business applications.
Typically Qualifying Vehicles Include:
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Trucks and vans with a GVWR over 6,000 lbs (F-250, F-350, F-450, F-550, Transit 250/350, Isuzu NPR, etc.)
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Specialty commercial vehicles like service body trucks, dump trucks, and box trucks
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Equipment and vehicles used for business 50% or more of the time
Partial Deductions May Apply For:
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SUVs and crossovers with a GVWR between 6,000-14,000 lbs (up to $28,900 in deductions)
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Vehicles used for both business and personal purposes (percentage of use matters)
Eligible Ford Models
| Model | GVWR | Typical Use | Section 179 Eligibility |
|---|---|---|---|
| Ford F-150 (Certain Trims) | Up to 7,850 lbs | Light-duty work, service, or fleet | Partial or full deduction (depending on configuration) |
| Ford F-250 Super Duty | 9,900–10,000 lbs | Towing, hauling, heavy-duty use | ✅ Fully eligible |
| Ford F-350 Super Duty | 11,000–12,400 lbs | Construction, landscaping, utility | ✅ Fully eligible |
| Ford F-450 / F-550 Super Duty | 14,000–19,500 lbs | Heavy commercial, towing, upfit-ready | ✅ Fully eligible |
| Ford F-600 | 22,000 lbs | Medium-duty applications | ✅ Fully eligible |
| Ford Transit 250 / 350 | 8,670–9,950 lbs | Cargo, delivery, shuttle, service | ✅ Fully eligible |
| Ford E-Series Cutaway (E-350 / E-450) | 10,050–14,500 lbs | Shuttle, ambulance, utility body | ✅ Fully eligible |
| Ford Chassis Cab (F-350–F-600) | 12,000–22,000 lbs | Custom upfits, dump, service, utility | ✅ Fully eligible |
Eligible Isuzu Models
| Model | GVWR | Typical Use | Section 179 Eligibility |
|---|---|---|---|
| Isuzu NPR (Gas/Diesel) | 12,000–13,000 lbs | Box trucks, landscaping, service | ✅ Fully eligible |
| Isuzu NPR-HD | 14,500 lbs | Delivery, HVAC, electrical, plumbing | ✅ Fully eligible |
| Isuzu NQR | 17,950 lbs | Freight, heavy delivery | ✅ Fully eligible |
| Isuzu NRR | 19,500 lbs | Towing, moving, equipment hauling | ✅ Fully eligible |
| Isuzu FTR | 25,950 lbs | Regional hauling, large deliveries | ✅ Fully eligible |
| Isuzu FVR | 33,000 lbs | Heavy freight and fleet applications | ✅ Fully eligible |
2025 Deduction Limits
(Based on current IRS guidelines - subject to change. Always confirm with your CPA.)
- Maximum Section 179 Deduction: $1,220,000- Phase-Out Threshold: $3,050,000 (deduction reduces after this total equipment spend)
- Bonus Depreciation: 60% (available after Section 179 limits are met)
These deductions apply to new and used qualifying vehicles purchased and placed in service before December 31, 2025.
Example Scenario
Let's say your business purchases a 2025 Ford F-350 for $68,000.
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Full vehicle price: $68,000
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Deductible under Section 179: $68,000
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Estimated tax savings (at 21% rate): ~$14,280
That's real savings - just for investing in your fleet before year-end.
Who Can Claim Section 179?
Almost any business that buys, finances, or leases eligible vehicles can qualify.
To take advantage of the deduction:
- The vehicle must be used for business at least 50% of the time- It must be purchased and placed in service before December 31, 2025
- The deduction must be claimed using IRS Form 4562
Deadline Reminder
To claim Section 179 for the 2025 tax year, qualifying vehicles must be:
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Purchased, delivered, and in service by December 31, 2025
Don't wait until the last minute - vehicle delivery and upfit times can affect eligibility.
Partner with All-State Ford
We specialize in helping Kentucky businesses find the right trucks and vans for their needs - and we'll make sure you're ready before the Section 179 deadline hits.
Our Team Can Help You:
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Identify qualifying vehicles for your industry
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Coordinate fast delivery and upfits
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Connect you with financing solutions that fit your business goals
Important Disclaimer
All information provided on this page is for general informational purposes only and should not be considered tax, legal, or accounting advice. All-State Ford Truck Sales is not a tax consultant or CPA firm. Businesses should consult their certified tax professional to confirm eligibility and deductions under Section 179 and other applicable tax codes.
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All-State Ford Truck Sales
1357 Gardiner Lane
Louisville, KY 40213
- Sales: (502) 459-0550
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