Quick Reference: 2025 Section 179 Limits

Max Deduction (2025):                                        $2,500,000 (phased out above $4,000,000)

Bonus Depreciation (2025):                                100% (applies after Section 179)

New & Used Equipment:                                     Qualifies for full Section 179 deduction

Specialized (Non‐Passenger) Vehicles:          No special limit (treated like equipment)

SUVs & Trucks >6,000 lbs GVWR:                    $31,300 max first‐year Section 179; remainder depreciated

Business‐Use Requirement:                              >50% business use; deduction limited to % of business use

Note: The Section 179 deduction phases out dollar‑for‑dollar when total qualifying purchases exceed $4,000,000 and is fully phased out at $6,500,000.

H.R.1 (effective for tax years beginning after December 31, 2024) doubled the Section 179 limit to $2,500,000, raised the phase‑out threshold to $4,000,000, and reinstated 100% bonus depreciation.