Section 179 Tax Breaks
Make Your Tax Dollars Work for You
Every choice your business makes should be both practical and purposeful. With Section 179 of the IRStax code, qualifying business owners may be able to deduct a significant portion of an eligible vehicle’s purchase price in the year it’s placed in service.
At Eddy’s Volvo, we’ll help you understand how a thoughtfully engineered Volvo SUV can support your business needs, delivering sophistication, safety, and financial advantage.
What Vehicles Qualify for the Section 179 Tax Deduction?
For the 2025 tax year, select luxury SUVs with a Gross Vehicle Weight Rating (GVWR) above 6,000 lbs and used more than 50% for business may qualify for a substantial Section 179 deduction.
To be eligible, your Volvo must meet these general requirements:
- Business use: Must be used for business purposes more than 50% of the time, with supporting documentation such as mileage logs.
- Placed in service: Must be purchased or financed and placed in service between January 1 – December 31, 2025.
- Ownership: Can be new or new-to-you (used), but must be new to your business.
- Weight rating: Vehicle must meet GVWR thresholds; confirmation available by VIN.
Volvo Models That May Qualify
Heavy SUV Category (6,001 – 14,000 lbs GVWR)
May qualify for up to $31,300 in Section 179 expensing, plus bonus depreciation on remaining cost, depending on configuration and business use:
- Volvo XC60 (select trims may qualify; confirm GVWR)
- Volvo XC90 (all trims typically meet or exceed 6,000 lbs GVWR)
Other Volvo Models
- Volvo XC40 (most trims fall below 6,000 lbs GVWR and typically qualify under standard luxury-auto depreciation limits rather than heavy-SUV Section 179 rules)
Always verify vehicle GVWR for the specific VIN to determine eligibility under Section 179.
Bonus Depreciation on the Remaining Cost
After claiming your Section 179 deduction, vehicles placed in service during 2025 may also be eligible for bonus depreciation on the remaining cost.
Under current IRS guidance:
- Vehicles placed in service January 1 – January 19, 2025 may qualify for 40% bonus depreciation.
- Vehicles placed in service January 20 – December 31, 2025 may qualify for 100% bonus depreciation under transitional rules.
Combined, Section 179 and bonus depreciation can help you optimize your business investment while driving a vehicle engineered for balance, innovation, and confidence.
Deduction Limitations
For the 2025 tax year:
- Section 179 deduction limit: $2,500,000
- Phase-out threshold: $4,000,000
Once total qualifying purchases exceed that threshold, deductions begin to phase out dollar-for-dollar.
For more information please consult a Tax Advisor and IRS.gov.
Maximize Your Savings with Eddy’s Volvo
Take advantage of Section 179 and elevate how your business moves. Our team can verify GVWR by VIN, help confirm eligibility, and coordinate documentation so your tax professional has everything they need.
Contact Eddy’s Volvo of Wichita today to explore eligible models or schedule your personalized test drive.
Schedule a Test Drive
* Indicates a required field