Section 179 Tax Changes

Many drivers in the Buffalo area think that the Section 179 tax credit is some complicated or mysterious code. However, it’s actually fairly simple. Section 179 used to be referred to as the “SUV Tax Loophole”, or the “Hummer Deduction” because many businesses used this tax code to write off the purchase of qualifying vehicles at the time (like SUVs and Hummers). But the benefits of this specific section of Section 179 have been greatly reduced over time (see ‘Vehicles & Section 179’ for further information). 

Although the SUV deduction has been lessened over time, the 2024 Section 179 changes have been more advantageous to small businesses than ever. Large businesses still benefit from the Section 179 tax credit, however, the original target of this legislation was small businesses in desperate need of aid. Find out more about what qualifies for the Section 179 tax credit and how it works with the experts at Joe Basil Chevrolet below!

How Does Section 179 Work for a Vehicle?

So, how does Section 179 work for your new or pre-owned Chevrolet vehicle? In past years, when a Cheektowaga business bought qualifying equipment, you’d typically write it off a little at a time through depreciation. So, for example, if your company spends $50,000 on a pickup for your construction site, you could potentially write off $10,000 a year for five years. Now, the 2024 Section 179 changes allow you to write off the entire purchase price of qualifying equipment for the current tax year. 

What Qualifies for the Section 179 Tax Credit?

All Lancaster businesses and beyond that purchase, finance, or lease new or used business equipment during the 2024 tax year should qualify for the Section 179 deduction. Keep in mind that to remain eligible, you have to spend less than $2,700,000. Most tangible goods used by American businesses qualify for the Section 179 tax credit. Nevertheless, for full guidelines on what property is covered under the Section 179 tax code, you’ll want to refer to the list provided on the Section 179 site. 

Save Big with the Section 179 Tax Credit!

If you’re taking advantage of the 2024 Section 179 changes, you’ll have to use any new or pre-owned software for business purposes more than 50% of the time to qualify. Have any remaining finance questions about how the updated Section 179 tax code works? Then you’ll want to contact us at Joe Basil Chevrolet for more information today!