Chevy SECTION 179 TAX DEDUCTIONS

Small Business Tax Deductions for Chevy Vehicles

Running a small business is hard work and you deserve a break. You can write off up to 100% of the purchase price of eligible Chevy vehicles. Under section 179 of the tax code your business may be eligible to deduct up to the full amount of the purchase price of any new vehicles.  These vehicles only need to be new to your business as the tax benefit applies to both new and used vehicles as long as they meet the requirements. There is no aggregate limit and the tax break applies to every qualified vehicle purchase your business made during the tax year. 

Contact us for more information or for fleet discounts online or call us at (888) 340-1421. Fremont Chevrolet looks forward to helping your business thrive in 2024 and beyond by providing all your new vehicle and vehicle service needs.

*Please note that any tax information found on this page should not be considered tax advice. Tax codes change and you should consult with a qualified tax professional or the IRS for current guidelines on tax deductions. 

Section 179 Tax Deductions on Vehicle Purchases

Section 179 of the IRS tax code details both what and how much businesses can deduct from their taxes from qualifying purchases. This deduction applies to the purchase of business-use vehicles. The deduction amount varies depending on the size of the vehicle. Qualifying passenger vehicles are eligible for a fixed deduction (up to $18,200 per vehicle for 2023), while larger vehicles can qualify for a deduction of up to 100% of the purchase price.  

Please use the links below to learn more about your potential tax savings. 

What Business Vehicles Qualify for the full Section 179 Deduction?

Note that because many vehicles can serve business and personal function both, the rules for business vehicle deductions are always evolving, and can be complicated. It's easier to list the typical vehicles that will generally qualify for a full section 179 deduction, and then discuss the rules for other vehicles.

Many "work vehicles" that, by their nature, are not likely to be used for personal purposes will usually always qualify for full Section 179 deduction. This includes the following vehicles:

  • Vehicles that can seat nine-plus passengers behind the driver's seat (i.e.: Hotel / Airport shuttle vans, etc.).
  • Vehicles with: (1) a fully-enclosed driver's compartment / cargo area, (2) no seating at all behind the driver's seat, and (3) no body section protruding more than 30 inches ahead of the leading edge of the windshield. In other words, a classic cargo van.
  • Heavy construction equipment will qualify for the Section 179 deduction, as will forklifts and similar.
  • Typical "over-the-road" Tractor Trailers will qualify.

What are the limits on Typical Passenger Vehicles used for Business?

For passenger vehicles, trucks, and vans (not meeting the guidelines below), that are used more than 50% in a qualified business use, the total deduction is limited to up to $18,200 per vehicle.

Exceptions include the following vehicles:

  • Ambulance or hearses used specifically in your business
  • Taxis, transport vans, and other vehicles used to specifically transport people or property for hire.
  • Qualified non-personal use vehicles specifically modified for business (e.g. work van without seating behind driver, permanent shelving installed, and exterior painted with company's name)
  • Other heavy "non-SUV" vehicles and trucks with a cargo area at least six feet in interior length (this area must not be easily accessible from the passenger area.) To give an example, many pickups with full-sized cargo beds will qualify for a full deduction (although some "extended cab" pickups may have beds that are too small to qualify).

First Year Chevy Vehicle Depreciation Limits

Note that these limits tend to increase every year so check with the IRS for the latest information. 

Up to 100% of the purchase price!

(no per-vehicle or aggregate limit)

  • Blazer
  • Colorado*
  • Express Cargo Van
  • Express Cutaway
  • Express Passenger Van
  • Silverado 1500
  • Silverado 2500 HD
  • Silverado 3500 HD
  • Suburban
  • Tahoe
  • Traverse
*Only 2.8L and 4WD

Up to $18,200 per vehicle

(no aggregate limit)

  • Bolt EV
  • Bolt EUV
  • Camaro
  • Colorado*
  • Corvette
  • Equinox
  • Malibu
  • Spark
  • Trailblazer
  • Trax
*All except 2.8L and 4WD