Section 179 Deduction: Vehicles Over 6,000 lbs

What is the Section 179 tax deduction?

Section 179 is a provision of the US tax code that allows businesses to deduct (write-off) the full purchase price of qualifying vehicles and equipment in the year of purchase, rather than depreciating them a little at a time over several years. For businesses considering an SUV or passenger vehicle purchase, this deduction can significantly reduce tax liability and improve cash flow. For more information, see IRS Publication 946.

Tax Deduction vs. ‘6,000-Pound Tax Credit’: What’s the Difference?

Some search for a “tax credit” when they really mean Section 179. Section 179 is a deduction—it reduces your taxable income, rather than providing a dollar-for-dollar reduction of your actual tax bill. Vehicles that meet the 6,000-lb threshold don’t qualify for a special “credit,” but they may allow for a higher Section 179 deduction under certain circumstances.

Understanding GVWR vs. Curb Weight

Many small business owners wonder if curb weight is enough to qualify for the “6,000-lb” threshold. The IRS generally looks at Gross Vehicle Weight Rating (GVWR), not curb weight. GVWR is the maximum operating weight of a vehicle as specified by the manufacturer, and you can typically find it inside the driver’s side door jamb. For borderline models like the Jeep Wagoneer, Honda Pilot, or Tesla Model Y, some trims may exceed 6,000 lbs while others do not—always check the door label for precise specs.

Looking for the best financing for company cars and SUVs?

At Crest Capital, we've developed an exclusive program specifically for financing business-use SUVs and company cars that maximize your Section 179 deduction. This program allows you to finance these vehicles under your company's name — a service most lenders won't offer.

Our exclusive SUV and passenger vehicle financing program is designed for:
• Business-use SUVs over 6,000 lbs GVWR
• Qualifying corporate passenger vehicles
• New and used vehicles from any seller

What vehicles qualify for the Section 179 deduction in 2025?

Eligible vehicles for the Section 179 tax write-off include:

Primary Qualification Categories:
• Heavy SUVs*, pickups, and vans (over 6,000 lbs. GVWR, more than 50% business-use)
• Luxury SUVs and Crossovers
• Full-size Pickup Trucks
• Passenger/Cargo Vans

Other Qualified Vehicles:
• Work-specific vehicles (dump trucks, delivery vehicles, etc.)
• Specialty service vehicles (ambulances, etc.)

*Note: Heavy SUVs have a deduction cap of $31,300 for the 2025 tax year. (Reference: Internal Revenue Bulletin: 2024-45 )

List of SUVs and Vehicles Exceeding 6,000 lbs GVWR

The following list focuses on SUVs and passenger vehicles that may qualify for Section 179 deduction. This list is regularly updated to reflect current model years and includes luxury SUVs, full-size SUVs, and larger crossovers that meet the weight requirement. Qualification depends on factors such as stated use and gross vehicle weight (GVW) which could vary by trim package. Most vehicles have this information on a label inside the driver's side door.

DISCLAIMER: Information in this list is sourced from official car manufacturer websites, government databases, and automotive review websites and may not be accurate. Vehicle weights may vary by model year and configuration, and multiple weight classifications may apply. The listed weights are for standard configurations and should be used as estimates only, as actual GVW can differ due to engine size, trim level, towing package, and other factors. We are not liable for errors or inaccuracies in the information presented, and you assume any risk in using it. To verify a vehicle's GVWR of over 6,000-pounds, check the driver's door. For precise information on a specific vehicle's GVW, consult a qualified professional.

What is the time limit for claiming Section 179 on vehicles in 2025?

To claim a Section 179 deduction, you must purchase and put the vehicle into service between January 1 and December 31 of the calendar year.

Can I finance a vehicle and take the Section 179 deduction?

Yes, you can finance a vehicle and still take the Section 179 deduction. This can be a great way to improve cash flow – you take the entire price as a deduction, but are only paying back a small portion of it this year.

Is it possible to finance a vehicle under a company's name?

Yes. In fact, financing a vehicle under your company's name can offer certain benefits, such as separating personal and business liabilities, and potentially enhancing the company's credit profile. However, most lenders do not offer this, and the few who do typically impose restrictions like blanket liens.

What are the limitations and caps on Section 179 deductions?

For 2025, the deduction limit is $1,250,000, with a total equipment spending cap of $3,130,000. The specific deduction amount for each vehicle depends on its total cost and the business use percentage (business use must be at least 50%). Keep in mind that the Section 179 deduction begins to phase out on a dollar-for-dollar basis once your total equipment purchases exceed the spending cap.

What is considered business use of a vehicle?

IRS guidelines divide all vehicle usage into three categories: business, commuting, and personal. Business use, which is deductible, includes traveling between job sites, transporting goods and equipment, and business-related travel away from the regular work location. Commuting and personal use are not deductible, and this remains true even if some “business activity” takes place in the vehicle during these times.

How do I calculate the business-use percentage?

To calculate the business-use percentage, divide the total miles driven for business purposes by the total miles driven (including personal use / commuting) for the year. The business use percentage is then applied to the purchase price of the vehicle to determine the deductible amount for Section 179. Your accountant or tax professional should help you here.

What is bonus depreciation and how does it work?

Bonus depreciation allows businesses to claim an additional first-year depreciation deduction on eligible property, including some vehicles. For 2025, the bonus depreciation rate is 40% (down from 60% in 2024). Note that for heavy SUVs and any vehicle under 6,000 lbs GVWR, bonus depreciation is limited – please consult Additional First Year Depreciation Deduction or ask your accountant/tax professional (please note that Crest Capital cannot answer any tax or eligibility questions).

How should I keep records for Section 179 vehicle deductions?

You’ll want to keep detailed records of your vehicle usage, including mileage logs, receipts, invoices, and any related expenses. These records will help you substantiate your business use claim if the IRS audits your tax return. Further, it is important to keep these records for at least three years after filing your tax return. For more information, consult the SBA Tax Guide.

What are some tax-saving strategies involving Section 179?

As mentioned earlier, consider financing vehicles instead of purchasing them outright, which can improve cash flow and still allow for the Section 179 deduction.

Pro Tip: Finance eligible vehicles towards the end of the calendar year. This minimizes the number of monthly payments made on the vehicle, while still taking a deduction.

Can I claim Section 179 deduction on used vehicles?

Absolutely—as long as they’re “new to you,” used vehicles can qualify for Section 179. The key factor is that the vehicle must meet all other requirements (e.g., GVWR over 6,000 lbs, 50%+ business use). So even if a vehicle was previously owned, you can claim Section 179 if you’re the first to use it in your business.

Are there state-specific rules and regulations for Section 179?

Depending on your state, it is possible there are state-specific rules and regulations that may apply to Section 179 deductions. To verify eligibility and requirements, contact the Department of Revenue for your state and/or a tax professional familiar with your state's tax laws.

Section 179 Deduction Calculation Example

You purchase a new heavy SUV with a GVWR of 6,500 lbs. for $60,000, and it is used 60% for business purposes. The business-use portion of the vehicle cost is $36,000 (60% of $60,000). So you can claim the full $31,300 maximum allowed for SUVs as a Section 179 deduction. (Note – this assumes all other criteria are met and you stay within Section 179’s total equipment spending limits).

Unleash the Full Potential of Section 179 with Crest Capital's Exclusive SUV Financing

Looking to finance a qualifying SUV or passenger vehicle? Crest Capital's exclusive financing program for well-qualified businesses can help you maximize the benefits of Section 179 while maintaining your working capital. Our program offers:
• Financing for vehicles in your company's name
• No blanket liens
• Competitive rates for well-qualified buyers
• Fast approvals and simplified documentation

This exclusive program is reserved for established Crest Capital customers who have an excellent payment history with us. If you're new to Crest Capital, please explore our equipment or commercial vehicle financing programs first.

Ready to take advantage of Section 179 benefits with a qualified vehicle purchase?

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