Section 179 Tax Deductions

  
Vans that deliver, even a huge tax break.

Your business could deduct up to $28,900 in Section 179 deductions - that's up to $6,069 in savings1

Does My Business Vehicle Qualify for a Section 179 Tax Deduction?

If you're a small business owner who recently purchased a Mercedes-Benz vehicle or commercial van, your work vehicle may qualify for a Section 179 tax deduction when you file your 2025 taxes with the IRS. The finance team at our Mercedes-Benz dealership in State College, PA, is here to help you determine whether your business vehicle qualifies for this tax deduction.

What Business Vehicles Qualify for Section 179?

Here's what to know about Section 179 deductions for the tax year 2025, as it pertains to commercial vehicles:

  • A vehicle must be used more than 50% for business purposes in the year it was placed into service
  • The vehicle must have been purchased and put into use before the end of the tax year (December 31, 2025)
  • Vehicle use for business purposes must be documented, noting mileage and purpose
  • The vehicle's title and registration must reflect the business or show clearly business-use
  • Vehicles are eligible for different levels of deduction according to their gross vehicle weight rating (GVWR):
    • Light vehicles (up to 6,000 lbs), such as light cars and trucks
    • Heavy vehicles (6,000 - 14,000 lbs), such as large SUVs, vans, trucks
    • Other vehicles (over 14,000 lbs) , such as commercial trucks, cargo vans, box trucks, vocational vehicles; other vehicles that are considered in this category include:
      • Shuttle vehicles with seating for more than 9 passengers behind the driver's seat
      • Delivery vans having a cargo area of at least 6 feet in interior length not easily accessible from the passenger area
      • Vehicles with an integral enclosure fully enclosing the driver compartment and load-carrying device, no seating behind the driver, and no portion of the body extending more than 30 inches beyond the windshield.
A man and a woman repairing a bike outside a Mercedes-Benz van.
Mobile coffee shop employees opening the back of a Mercedes-Benz van.

How Much Can I Deduct for Section 179?

Business owners may deduct up to $2,500,000 in total business expenses for the tax year 2025. The amount a business owner may write off for a vehicle depends on its usage and gross vehicle weight rating (GVWR):

  • Light vehicles - $12,400
  • Heavy vehicles - $31,300
  • Other vehicles - Full amount

Vehicles may also qualify for bonus depreciation up to 100%, depending on age, usage, and type of vehicle.

Highlights

If you're a small business owner who purchased a work vehicle in 2025 and used it more than 50% of the time for business purposes, your vehicle may qualify for Section 179 deduction for the 2025 tax year.


Vehicle TypeGVWR2025 Deduction Cap2025 Bonus Depreciation
Light vehicle6,000 pounds$12,400Up to $8,000
Heavy vehicles6,000 - 14,000 pounds$31,300Up to 100%
Other vehiclesOver 14,000100%
A Mercedes-Benz van parked in a grassy field surrounded by trees.

Contact Our Mercedes-Benz Finance Center in State College, PA

Talk to the finance department at Mercedes-Benz of State College about whether your Mercedes-Benz qualifies for this IRS tax deduction for the tax year of 2025. You can also contact us with questions about Section 179 deductions for your Mercedes-Benz vehicle.

Contact Mercedes-Benz of State College

1 - *$6,069 tax savings based on 21% federal corporate tax rate and eligibility to claim full $28,900 IRS Section 179 tax deduction for qualified vehicles. Your tax rate and eligibility may vary. Please consult a tax professional for more information on your federal tax rate and potential tax savings available to you for qualifying purchases. This information does not constitute, nor is it intended to be, legal, tax, financial planning or investment advice and should not be relied upon as much.

**$28,900 tax deduction for qualifying vehicles based on current Section 179 of U.S. tax code and maximum deduction permitted for such vehicles under Section 179. Vehicles must be purchased for business use. Please consult your tax advisor. This information does not constitute, nor is it intended to be, legal, tax, financial planning or investment advice and should not be relied upon as such.

***Offer valid through December 31, 2023.

2 - Select Model Year 2023 Sprinters may come equipped with modified reflectors found on the rear bumper of the van.