Section 179

Are you a Milford, NH business owner with a commercial van or truck? Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. This includes business vehicle acquisitions as well.

Contemporary Automotive offers many of these commercial trucks and vans to Milford, Bedford, Merrimack, Nashua, and Manchester, NH business owners. Learn more with us below as we go over the benefits and what you need to qualify for this greatly appreciated automotive tax benefit.

Which Vehicles Quality for the Section 179 Tax Break?

Below you will find the list of vehicles and specifications your commercial truck or van would need to meet in order to receive either a full or partial deduction:

Business Vehicles for Full Section 179 Deduction

Work-centric vehicles, mainly used for business, generally qualify for a full Section 179 deduction. These include:

• Vehicles like shuttle vans that can seat more than nine passengers behind the driver’s seat
• Classic cargo vans featuring a fully-enclosed driver’s compartment/cargo area, with no seating behind the driver’s seat
• Over-the-road Tractor Trailers
• “Singular use” business vehicles like ambulances or hearses

Business Vehicles for Partial Section 179 Deduction

Trucks and SUVs exceeding 6,000 lbs. GVWR (Gross Vehicle Weight Rating) qualify for a partial deduction if the business use surpasses 50%. However, deduction limits vary, depending on the vehicle type.

For vehicles weighing between 6,000 lbs. and 14,000 lbs. and with a minimum of 50% business use, the following generally qualify:

• Pickup trucks with a full-size (8’) cargo bed
• Heavy SUVs – with a maximum deduction cap of $30,500 for 2024

Learn More About Qualifying for Section 179 Tax Deduction with Contemporary Automotive

Contact us online or schedule an appointment with our finance center to learn more about your Section 179 tax deduction options. We’ll help you understand your options when looking for commercial vehicles for your business. You can also shop for new and pre-owned commercial vehicles at our Milford auto dealership today.