What is Section 179?

Section 179 is a provision of the IRS tax code designed to help small to medium businesses grow by allowing them to purchase the equipment for their business needs and take the purchase price off as a tax deduction. Unlike previous years, where you had to take incremental deductions based on complicated depreciation calculators, Section 179 is a simpler way to acquire the equipment you need now and reduce your business's total tax liability. New and used vehicles at Leesburg Buick GMC qualify for Section 179 as long as they are used for at least 50 percent business purposes and placed into service by December 31, 2024. There are total annual spending caps in place this year to ensure Section 179 is a true small business benefit:

• Total deduction limit for equipment purchased in 2024 is $1,220,000
• Total spending cap for equipment purchased in 2024 is $4,270,000, meaning that businesses who spend more than the total spending cap do not qualify for Section 179 deductions
• The deduction amount starts to phase out dollar for dollar once a business spends $3,050,000 until the total spending cap is reached
• Bonus depreciation is 60 percent in 2024 and is currently being phased out

The above is an overall, "birds-eye" view of the Section 179 Deduction for 2024. For more details on limits and qualifying equipment, as well as Section 179 Qualified Financing, please read this entire website carefully. We will also make sure to update this page if the limits change.

Here is an updated example of Section 179 at work during the 2024 tax year

Take Up to 100 Percent Off the Purchase Price:

• Sierra 1500 / 2500 HD / 3500 HD (Standard and Long Bed)
• Sierra 3500 HD Chassis Cab
• Savana Cargo Van
• Savana Passenger Van (12 or More Passenger Seats Only)
• Savana Cutaway

Deduct Up to $30,500 plus 60 percent Bonus Depreciation:

• Sierra 1500 (Denali trims and short beds)
• Yukon, including Denali trims
• Yukon XL, including Denali trims
• Acadia, including Denali trims
• Canyon
• Savana Passenger Van (less than 12 passenger seats)

Deduct Up to $20,400 on All Passenger Vehicles:

• Terrain, including Denali trims
• All new and used passenger cars, crossover SUVs, and light duty trucks under 6,000 pounds

EV Tax Incentives for 2024

Take charge of your business capacity and enjoy additional savings with the clean vehicle tax incentive available for new GMC electric vehicles (EVs) this year:

• 2023-2025 Hummer EV SUV: $7,500
• 2023-2025 Hummer EV Pickup: $7,500
• 2024-2025 Sierra EV: $7,500

Save On New and Used GM Models for Your Business at Leesburg Buick GMC

Thanks to the flexibility of Section 179, any new or used vehicle on our lot qualifies for at least a partial deduction. Please always consult a tax preparation specialist for exact details on the deductions and incentives your business qualifies for. Contact our team at Leesburg Buick GMC for more information and to schedule a test drive to help you determine which vehicles are suitable for business use. We look forward to helping your business grow with high-quality vehicles and money-saving tax benefits.