When you shop for a Volvo XC90 at Volvo Cars Fresno, you might qualify for valuable tax incentives, saving you money on your purchase. The new Volvo XC90 and EX90 are eligible for the Section 179 Tax Deduction, providing significant savings. Have questions about how to claim these Volvo tax deductions? Visit our dealership to speak with our knowledgeable auto financing team today or speak to your financial advisor.
How Section 179 can benefit your business
If you’re considering adding or upgrading vehicles to your business fleet, Section 179 can make a significant difference in your bottom line. We recommend speaking with your financial or tax advisor to confirm eligibility and determine how this deduction can best benefit your business. This valuable incentive applies to a wide range of business investments—including new or pre-owned vehicles—helping businesses reinvest in their growth while lowering taxable income.
Section 179 deduction dollar limits for 2025.
For tax years beginning in 2025, the maximum Section 179 expense deduction is $2,500,000. This limit is reduced by the amount by which the cost of Section 179 property placed in service during the tax year exceeds $4,000,000.
Also, the maximum Section 179 expense deduction for sport utility vehicles placed in service in tax years beginning in 2025 is $31,300.
What Qualifies for Section 179?
Eligible assets include:
- Business Vehicles: Over 6,000 lbs GVWR (Note: SUVs/trucks have a $31,300 limit)
- The property must be used more than 50% for business in the year it is placed into service. If usage is partly personal, the deduction is reduced proportionally.
- The property must be installed and ready for active business use within the same tax year you plan to claim the deduction.
- Section 179 requires that the equipment or software be acquired by purchase, financing, or a capital lease that qualifies under IRS guidelines.