​​Section 179​

Understanding the Section 179 Vehicle Deduction 

If you own a small- or medium-sized business in Texas, you can upgrade your fleet and save with the Section 179 tax code. The Section 179 Tax Deduction allows business owners to write off up to the total purchase amount of a GMC or Buick truck, van, or SUV rather than depreciate it a little over several years, so long as it’s used for business purposes more than 50% of the time. This section also applies to other capital expenses, such as equipment and software placed in service during the year, up to $2.5 million for 2025 (the figure is adjusted for inflation). Two general limits on the allowance’s use include: 

1. The allowance cannot exceed a business owner’s income from all trades or businesses they own.  
2. The allowance phases out if the total amount of qualified assets placed in service in a year exceeds $2.5 million for 2023. This figure is also indexed for inflation. 

Therefore, a business may not claim an IRC Section 179 expense allowance in 2025 if assets placed in service during the year reach or exceed $4 million. As a result of these limits, the allowance is available primarily to small businesses. 

Qualifying Vehicles 

The code is primarily designed to help businesses that need to purchase large vehicles for their business. The Section 179 qualifications for Buick and GMC vehicles to deduct 100% of the purchase price include: 

• Apparent non-personal “work” vehicles (dump truck, backhoe, farm tractor, etc.) 
• Specialty vehicles with a specific use (hearse, ambulance, etc.) 
• Delivery use vehicles (cargo vans, box trucks) 
• Heavy SUVs, pickups, and vans over 6,000 lb. GVWR 
• Road-going vehicles under 6,000 lb. can qualify for a deduction of less than 100% of the purchase price. 

Consequently, GMC and Buick lineups qualify for Section 179 in the following ways:

Up to 100% of the Purchase Price 

• Sierra 1500/2500/3500 – Standard and Long Bed 
• Sierra 3500 HD Chassis Cab  
• Savana Cargo Van  
• Savana Passenger Van
  (10+ passenger seating only)  
• Savana Cutaway 

Partial 179 Expensing with Bonus Depreciation 

• Sierra 1500 – Short Bed (including Denali) 
• Yukon (including Denali) 
• Yukon XL (including Denali) 
• Acadia (including Denali) 
• Canyon 
• Savana Passenger Van (all except 10+ passenger seating) 

Up to $25,000

Plus up to 80% of the remaining purchase price plus standard depreciation 

• Buick Enclave (including Avenir) 

Up to $20,200 

Vehicles with less than 6,000 lb. GVWR. 

• GMC Terrain (including Denali) 
• Buick Envision (including Avenir) 
• Buick Encore GX 

Usage Qualifications 

The IRS requires the vehicle to be registered in the business name for which you will take the deduction. The other primary qualification is that over 50% of the vehicle’s usage must be for business use. Commuting and personal use do not qualify as business. Having a business logo on the exterior or even full advertising on the exterior does not qualify the commute as advertising. In addition, conducting business calls or performing business as a passenger while commuting is not considered vehicle business use.  

Thus, to qualify a vehicle for Section 179, you will need to keep mileage records of road-going vehicles to substantiate that more than 50% of its use is for business. This will include the original invoice, mileage logs, and any related expenses that can substantiate the claim. There are apps for your phone that can help you track mileage and expenses. Like other business records, documents that confirm your business use claim should be retained for three years after you file your return in case the IRS audits your tax return.  

Vehicles can be Used and/or Financed 

You can finance a qualifying vehicle over several years and still qualify for the full purchase deduction, and that applies to purchases up to December 31st, not that we recommend you wait that long. The purchase of a used qualifying vehicle will also apply, with the stipulation that the vehicle must be new to you and the business.  

Understanding the Section 179 deduction is important for any small business owner looking to maximize their tax savings. This is only an introduction to the concept, so Ewing Buick GMC recommends that you consult with your tax professional and stay updated on the latest tax laws to take full advantage of this valuable tax incentive.