Section 179 Tax Deduction for Vehicles

Lincoln Section 179 Tax Savings for Vehicles

Have you been considering upgrading your company car or adding a new vehicle to your business? It’s the perfect time to take the leap at our Mount Vernon Lincoln dealership, where we work hard to support fellow local business owners and small companies. When you buy a new or new-to-you vehicle that’s used for work at least 50% of the time before the end of the year, you may be able utilize Section 179 tax rules to deduct the purchase cost on your 2023 taxes.

Not sure which vehicles qualify for Section 179? Our team can tell you all about the 2023 Section 179 requirements when you visit Lincoln of Mt. Vernon. There are many eligible options to choose from on our lot, ranging from new Lincoln SUVs to pre-owned commercial vehicles from other makes.

Business man loading his luggage into a Lincoln SUV
Porsche Panamera parked outside of an office building

2023 Section 179 Tax Deduction Details

  • Total annual deduction: Up to $1,160,0001 -- valid on new and used equipment (must be new to the buyer).
  • 2023 Spending Cap: Up to $2,890,0001 -- the max amount that can be spent on equipment before Section 179 benefits begin to reduce on a dollar-for-dollar basis.
  • Bonus Depreciation: 80%1 -- generally taken after the Spending Cap is reach, valid on new and used equipment.
  • Vehicle must be delivered and put into service by 12/31/20231

2023 Section 179 Vehicle Requirements

  • Used for business purposes at least 50% of the time1
  • New or new-to-you (pre-owned qualifies)
  • Purchased, not leased
  • Vehicle must be delivered and put into service by 12/31/20231