If you're a small business owner in Northern Colorado interested in adding a new GMC to your fleet, your purchase may qualify for tax deductions under Section 179 of the current tax code. By allowing business taxpayers to deduct the cost of certain property as an expense when the property is first placed in service, Section 179 encourages owners to reinvest in their business and grow their operations. Learn more about how you can take advantage of Section 179 deductions with Markley Buick GMC before stopping by our dealership near Fort Collins to explore our selection of eligible GMC models.
Fast Facts About Section 179 Deductions
- Tax Deduction, Not a Credit: Section 179 is not a dollar-for-dollar credit on your purchase. Instead, it lowers the amount of taxable income you have for the year, reducing your overall tax burden.
- Used Vehicles Can Qualify: Both new and used vehicles qualify for Section 179 deductions, so long as they are "new to you." Leased vehicles and vehicles you plan to lease are not eligible.
- GVWR: To qualify for a Section 179 deduction, vehicles must have at least a 6,000-pound Gross Vehicle Weight Rating (GVWR). This weight rating is typically found in the driver's door jamb.
- Business Use: Vehicles eligible for a Section 179 deduction must be used for business purposes at least 50% of the time. If the vehicle is not used for business operations 100% of the time, the amount of depreciation you can deduct is reduced.
- Deduction Cap for Heavy SUVs: For 2025, there is a $31,300 deduction cap for heavy SUVs (over 6,000 pounds GVWR).
- Bonus Depreciation Drop: Business owners can apply bonus depreciation (up to 100% for 2025) to the remaining purchase price of their vehicle.
Qualifying GMC Vehicles
So, which SUVs and passenger vehicles are eligible for Section 179 deductions? Explore qualifying models and Section 179 eligibility below:
Up To 100% Of Purchase Price (179 Expensing)
- GMC Sierra 1500 (Standard & Long Bed)
- GMC Sierra 2500 / 3500 (Standard & Long Bed)
- GMC Sierra HD Chassis Cab
- GMC Savana Cargo Van
- GMC Savana Passenger Van (10+ passenger seating only)
- GMC Savana Cutaway
Up To 100% Of Purchase Price (Partial 179 Expensing & Bonus Depreciation)
- GMC Sierra 1500 (Short Bed)
- GMC Yukon / Yukon XL
- GMC Acadia
- GMC Canyon
- GMC Savana Passenger Van (all except 10+ passenger seating)
Up To $20,200
Each Windsor business is unique, so always check with your tax advisor for the latest guidance.
Find A New GMC For Your Business At Markley Buick GMC
When you're ready to start shopping for your next GMC, reach out to Markley Buick GMC. Our team will schedule an appointment at our Fort Collins dealership so you can explore the full range of vehicles that qualify for Section 179. No matter what kind of SUV or truck you need for your operations, Markley Buick GMC is here to assist.
