Utilize Section 179 Business Vehicle Tax Deduction with Bob Moore Cadillac OKC

Looking to invest in your business before the end of the year? Use Section 179 to take your savings to the next level. Section 179 is a federal tax deduction for business owners, providing considerable savings on vehicles that meet some specified criteria. We’ll break down what Section 179 is, how to use it, and how you can qualify for your next purchase. At Bob Moore Cadillac dealership in OKC, we have several different models that are eligible for the federal tax break, including great shuttle or premium private shuttle options like the Cadillac Escalade. Learn more about which vehicles qualify for the federal tax incentive with our OKC Cadillac dealership!

What is the Section 179 Tax Credit?

Section 179 is a part of the tax code that aims to lower business expenses for small business owners, allowing them to invest in their businesses while taking on less risk. Section 179 allows you to deduct the cost of property as an expense, meaning you can deduct up to $25,000 from your taxes when you make an eligible purchase. This helps buyers qualify for larger vehicles and more features and can even help you add more cars to your fleet. As with all tax credits, some conditions must be met to ensure you qualify. We’ll break those down below.

How Does Section 179 Work?

The Section 179 tax break is tied to your vehicle’s weight. The vehicle’s gross weight must be over 6,000 lbs and under 14,000 lbs to qualify. The vehicle must also be in service before the end of the year. To qualify as “put in service”, the vehicle must be used for business purposes more than 50% of the time. This deduction was initially intended for machinery like forklifts, heavy-duty trucks, cargo vans, and other mid-size machinery. These days, several luxury SUVs meet the weight requirements laid out in Section 179, allowing you to take advantage of it for your work fleet. Provided you use your SUV for business purposes more than 50% of the time, you can still use your Cadillac as a personal vehicle after hours, giving the vehicle double the utility!

Which Cadillac Vehicles Qualify for Section 179?

This year, models like the Cadillac XT5, XT6, Escalade, and Escalade ESV all qualify due to their weight. The all-electric straddles the line, with some models not quite making the weight requirement. The Cadillac Escalade continues to be the most popular vehicle for folks looking to take advantage of the tax credit, as it’s the benchmark for luxury corporate transportation. There’s a reason all the movies show politicians and CEOs escorted around in Escalades. They represent the best SUV travel experience, providing many amenities, plenty of space, and a well-crafted cabin. The XT5 and XT6 provide similar experiences in a smaller cab. Escalades continue to be popular among private chauffeurs and businesses looking to expand their fleets. 

Bob Moore Cadillac of Edmond is always happy to answer any questions about your next car purchase! However, before taking advantage of any federal tax deduction, it is wise to consult with your preferred tax professional.