Vehicles over 6,000 pounds are eligible for tax incentives if the vehicle is purchased through a business.
Light Section 179 Vehicles
Any vehicle with a manufacturer’s gross vehicle weight rating (GVWR) under 6,000 pounds (3 tons).
This includes many passenger cars, crossover SUVs, and small utility trucks.
For 2021, these autos have a Section 179 tax deduction limit of $10,200 in the first year they are used. In fact, if the extra $8,200 of Bonus Depreciation is also factored in, you can deduct up to a combined maximum of $18,200 for 2021.
Heavy Section 179 Vehicles
Any vehicle with at least 6,000 pounds GVWR but no more than 14,000 pounds (3-7 tons).
This includes many full-size SUVs, commercial vans, and pickup trucks.
For 2021, a vehicle qualifying in the “heavy” category has a Section 179 tax deduction limit of $26,200. However, these autos are eligible for 100% bonus depreciation through the end of 2022. Starting in 2023, the allowable bonus depreciation percentage will decrease each year.