Section 179 Information

Chevrolet Section 179 Tax Deduction near Butte, MT

Upgrade your fleet with commercial vehicles and take your business to new heights when you take advantage of the Section 179 tax deductions at our          Chevy dealership near Butte. When you buy a new Chevy truck or van from us, you may be able to claim savings with this tax code and write off up to 100% of the costs.1          You may be asking, what's Section 179? It's an IRS tax code designed to help small and medium businesses invest in themselves by allowing them to deduct vehicle expenses. It can apply to many of the Chevy commercial models, as well as some passenger vehicles on our lot. So, hurry over to Beaverhead Motors to learn more!       

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Section 179 in a Nutshell for 2025

2025 Deduction Limit = $1,250,000

This deduction is good on new and used equipment, as well as off-the-shelf software. To take the deduction for tax year 2025, the equipment must be financed or purchased and put into service between January 1, 2025 and the end of the day on December 31, 2025.

2025 Spending Cap on equipment purchases = $3,130,000

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. This spending cap makes Section 179 a true "small business tax incentive" (because larger businesses that spend more than $4,380,000 on equipment won't get the deduction.)

Bonus Depreciation: 40% for 2025

Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. The Bonus Depreciation is available for both new and used equipment.

The above is an overall, "birds-eye" view of the Section 179 Deduction for 2025. For more details on limits and qualifying equipment, as well as Section 179 Qualified Financing, please read this entire website carefully. We will also make sure to update this page if the limits change.

Here is an updated example of Section 179 at work during the 2025 tax year.

What is the Section 179 Deduction

Most people think the Section 179 deduction is some mysterious or complicated tax code. It really isn't, as you will see below.

Essentially, 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. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It's an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.

Several years ago, Section 179 was often referred to as the "SUV Tax Loophole" or the "Hummer Deduction" because many businesses have used this tax code to write-off the purchase of qualifying vehicles at the time (like SUV's and Hummers). But that particular benefit of Section 179 has been severely reduced in recent years (see 'Vehicles & Section 179' for current limits on business vehicles.)

However, despite the SUV deduction lessened, Section 179 is more beneficial to small businesses than ever. Today, Section 179 is one of the few government incentives available to small businesses, and has been included in many of the recent Stimulus Acts and Congressional Tax Bills. Although large businesses also benefit from Section 179 or Bonus Depreciation, the original target of this legislation was much needed tax relief for small businesses - and millions of small businesses are actually taking action and getting real benefits.

Here's How Section 179 works:

 

Traditionally, when your business purchased qualifying equipment, you would deduct its cost gradually through depreciation. For instance, if your company invested $50,000 in machinery, you might deduct $10,000 annually over five years (these figures are simply for illustration purposes).

While this approach certainly beats having no deduction whatsoever, most business owners would much rather deduct the full equipment purchase price in the same year they acquire it.

That's precisely what Section 179 provides - it enables your business to deduct the complete purchase price of qualifying equipment during the current tax year.

This has created significant opportunities for many companies (and boosted the economy overall.) Businesses have leveraged Section 179 to acquire necessary equipment immediately, rather than delaying purchases. For most small businesses, the full cost of qualifying equipment can be deducted on the 2025 tax return (up to $1,250,000).

What Are the Section 179 Limits for 2025?

It's important to note that in order to receive the Section 179 benefits, the vehicle you buy must be registered and put into service by December 31, 2025. If you're ready to buy a new Chevytruck, passenger vehicle or cargo van for your business, we can answer any questions you may have. Some of the essential details to keep in mind include:

  • 2025 Deduction Limit: $1,250,0001-- valid on new and used equipment (must be new to the buyer).
  • 2025 Spending Cap: $3,130,0001-- the max amount that can be spent on equipment before the Section 179 Tax Deduction begins to reduce on a dollar-for-dollar basis.
  • 2025 Bonus Depreciation: 40%1-- generally taken after the Spending Cap is reached, valid on new and used equipment.

Used trucks, vans and other pre-owned vehicles can also qualify for Section 179 tax savings -- what's important is that vehicle is "new to you." Passenger vehicle Section 179 deductions include:

  • SUVs & Trucks Over 6,000 lbs GVWR: Limited to $31,300 for section 179 in the first year (including Remainder Depreciation)1
  • Passenger Vehicles: Subject to lower caps, around $20,200 (including Bonus Depreciation)1

Who Qualifies for Section 179?

All businesses that purchase, finance, and/or lease new or used business equipment during tax year 2025 should qualify for the Section 179 Deduction (assuming they spend less than $4,380,000).

Most tangible goods used by American businesses, including "off-the-shelf" software and business-use vehicles (restrictions apply) qualify for the Section 179 Deduction.

For basic guidelines on what property is covered under the Section 179 tax code, please refer to. list of Section 179 Qualifying Equipment. Also, to qualify for the Section 179 Deduction, the equipment and/or software purchased or financed must be placed into service between January 1, 2025 and December 31, 2025.

For 2025, $1,250,000 of assets can be expensed; that amount phases out dollar for dollar when $3,130,000 of qualified assets are placed in service.

What's the difference between Section 179 and Bonus Depreciation?

Bonus depreciation is offered some years, and some years it isn't. Right now in 2025, it's being offered at 40%.

The most important difference is both new and used equipment qualify for the Section 179 Deduction (as long as the used equipment is "new to you"), while Bonus Depreciation has only covered new equipment only until the most recent tax law passed. In a switch from recent years, the bonus depreciation now includes used equipment.

Bonus Depreciation is useful to very large businesses spending more than the Section 179 Spending Cap (currently $3,130,000) on new capital equipment. Also, businesses with a net loss are still qualified to deduct some of the cost of new equipment and carry-forward the loss.

When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation - unless the business had no taxable profit, because the unprofitable business is allowed to carry the loss forward to future years.

 

Eligible Chevy Vehicles

Up to 100% of purchase price

  • Blazer
  • Colorado
  • Express Cargo Van
  • Express Cutaway
  • Express Passenger Van
  • Low Cab Forward
  • Silverado 1500
  • Silverado 2500 HD
  • Silverado 3500 HD
  • Silverado HD Chassis Cabs
  • Suburban
  • Tahoe
  • Traverse

Up to $19,200 per vehicle

  • Bolt EV
  • Bolt EUV
  • Camaro
  • Colorado
  • Corvette
  • Equinox
  • Malibu
  • Spark
  • Trailblazer
  • Trax

Commercial Chevy Dealer in Dillon, MT

For more information on Chevy Section 179 deductions and which vehicles apply for tax savings, contact Beaverhead Motors today. We'll be happy to show you our commercial Chevrolet trucks for sale near Butte or set you up with a Chevy Silverado 1500 test-drive so that you can find the vehicle you need that can better help your business succeed. We look forward to seeing you on our lot!

 
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1See dealer for details. Advice your account for personal eligibility.

Section 179's "More Than 50 Percent Business-Use" Requirement

The equipment, vehicle(s), and/or software must be used for business purposes more than 50% of the time to qualify for the Section 179 Deduction. Simply multiply the cost of the equipment, vehicle(s), and/or software by the percentage of business-use to arrive at the monetary amount eligible for Section 179.

Please see https://www.section179.org/section_179_deduction/ for more information.