Section 179 Tax Rebate Eligible Vehicles

Which Chevrolet & GMC Models Qualify for Section 179 Tax Deduction? - Germain GM of Sidney

If you’re a business owner looking to expand your fleet, it’s only natural that a Chevrolet or GMC model has caught your eye. Thanks to Section 179 of the current IRS tax code, your next business purchase can now be even more rewarding. Qualifying vehicles that have a gross vehicle weight rating (GVWR) exceeding 6,000 pounds may be eligible for full depreciation during the first year of ownership when used solely for business purposes3. This means that you could potentially lower your tax liability and save your business thousands of dollars. Germain Chevrolet GMC of Sidney has created this helpful guide that covers the requirements and benefits that you could potentially enjoy with Section 179. Let’s begin!

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Section 179 Deduction Explained

Chevrolet Silverado 1500

»REMINDER: If you have any questions, be sure to contact your tax professional for exact recommendations and rules related to Section 179 and vehicle eligibility.«

Section 179 of the IRS tax code allows businesses to deduct the price of qualifying equipment, such as vehicles, purchased or financed during the tax year. This incentive was introduced by the United States government to encourage businesses to buy equipment and invest in themselves.

Vehicles with a GVWR (gross vehicle weight rating) over 6,000 pounds, but not more than 14,000 pounds, allows for 100% depreciation in the current tax year, provided the vehicle is bought and put into service before January 1, 2023 and also meets other conditions:

  • The vehicle can be either new or used; however, it must be purchased in an “arm’s-length” transaction that has been financed with qualified loans and leases and the title of the vehicle must be in the company’s name and not in the name of the company owner.
  • At least 50% of the time, the vehicle should be used for business purposes and if the vehicle is not used completely for business purposes, 100% of the time, then there is a reduction of depreciation limits by the corresponding percentage of personal usage.
  • You can claim the Section 179 deduction only in the tax year in which the vehicle has been put into service i.e. when the vehicle is ready and available, although you are not using the vehicle.
  • Also, a vehicle that has been used for personal purposes first does not qualify for the Section 179 deduction if its purpose is changed to business use in a later year.

NOTE: Individual tax situations may vary. Please consult your tax advisor for complete details on rules applicable to your business.

Chevrolet & GMC Trucks, SUVs, & Vans Eligible for Section 179 Deduction

GMC Savana Cargo Van

The following Chevrolet and GMC models currently may qualify for Section 179 deduction based on a gross vehicle weight rating (GVWR) exceeding 6,000 pounds. As always, if you have any questions, please consult your tax professional for exact rules regarding Section 179 and vehicle eligibility. Please note: model eligibility may vary based on trim level and equipment. The list is subject to change.

Chevrolet Models:

  • Colorado (select models only)

  • Silverado 2500 HD

  • Silverado 3500 HD

  • Silverado 4500 HD

  • Silverado 5500 HD

  • Silverado 6500 HD

  • Express Cargo Van 2500

  • Express Cargo Van 3500

  • Express Passenger Van

  • Suburban

  • Tahoe

  • Traverse (select models only)

GMC Models:

  • Acadia (select models only)

  • Canyon (select models only)

  • Hummer EV Pickup

  • Hummer EV SUV

  • Sierra 2500 HD

  • Sierra 3500 HD

  • Sierra 4500 HD

  • Sierra 5500 HD

  • Sierra 6500 HD

  • Savana Cargo Van 2500

  • Savana Cargo Van 3500

  • Savana Passenger Van

  • Yukon

  • Yukon XL

»As always, if you have questions, consult your tax professional for exact rules regarding Section 179 and vehicles.«

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1. Individual tax situations may vary. The information presented was accurate at time of publishing. Federal rules and tax guidelines are subject to change. Consult your tax advisor for complete details on rules applicable to your business.

2. Comparisons based on Section 179 and 168(k) of the Internal Revenue Code, which allows for additional first year depreciation for eligible vehicles and reflects figures for owners who purchase vehicles for 100 percent business use and place vehicles in service by January 1, 2023.

3. With Gross Vehicle Weight Ratings (GVWR) of more than 6,000 pounds, these Ford models are classified as “heavy SUVs.” Gross Vehicle Weight Rating (GVWR) is the manufacturer’s rating of the vehicle’s maximum weight when fully loaded with people and cargo.

4. Comparisons based on Section 179 and 168(k) of the Internal Revenue Code, which allows for additional first year depreciation for eligible vehicles and reflects figures for owners who purchase vehicles for 100 percent business use and place vehicles in service by January 1, 2023.