Use Vehicle Deductions to Your Advantage

The One Big Beautiful Bill Act (OBBBA) expanded the deductions available for business vehicles in 2025. Timing and vehicle type are critical.

Heavy SUVs, Pickups, and Vans

These vehicles with a gross vehicle weight rating (GVWR) over 6,000 pounds may qualify for:

·         100 percent bonus depreciation

·         Section 179 expensing up to $31,300 for SUVs and $2.5 million for trucks and vans

·         No luxury limits

Example. A $50,000 SUV used 90 percent for business produces a $45,000 deduction this year.

Standard-Weight Vehicles

Cars (and lighter SUVs with GVWRs of 6,000 pounds or less) face luxury depreciation caps—allowing only up to $20,200 in first-year deductions.

Act Before Year-End

To qualify, you must own the vehicle and place it in service by December 31—meaning it’s ready and being used for business. Driving it even one business mile before midnight proves eligibility.

Note. Electric-vehicle tax credits ended September 30, 2025.