Take Advantage of Section 179 in Time for Tax Season

With tax season coming up, you need to start organizing your deductions and your bottom line when it comes to your fleet. Fortunately, the Mercedes-Benz Sprinter and eSprinter vans are eligible for Section 179 of the Federal tax law.  

What is Section 179? It is a key part of the United States tax law, enabling your business to deduct up to the total purchase price of a new or used vehicle that has a Gross Vehicle Weight Rating (GVWR) of 6,000 pounds or more and is used for business purposes more than 50% of the time.  

For the 2025 tax year, your business will be able to write off as much as $2.5 million worth of new assets – including vehicles – used by and for your company. Section 179 is vital for small and medium-sized businesses, but the tax law has a couple of main limitations. For one, the amount of money deducted cannot be more than the income of the business owner’s trades or the total businesses they own. Plus, the deduction allowance phases out if the qualified assets the business owner puts into effect during the taxable year exceed $4.0 million, including inflation indexing.   

Qualified vehicles range from Sprinter vans – both cargo and passenger types – cab-chassis models, battery-electric eSprinter models, and a few select SUVs, such as the G-Class and GLS. They can be new or pre-owned. Business owners can deduct the purchase price of their fleet vehicles, whether they are financed, leased, or paid in full. Keeping records of mileage, fuel, and maintenance expenses is also highly suggested.  

Why take advantage of Section 179 tax incentives now? Even if you own a single vehicle for your business or work, you can maximize your tax impact by replacing or adding a new or pre-owned Mercedes-Benz. It also helps to attract new customers with a vehicle wearing the Three-Pointed Star. 

Maintaining a fleet of Mercedes-Benz vehicles – particularly the Sprinter lineup – is easy for small and medium-sized businesses, utilizing our maintenance facility and other systems that enable you to control your bottom line. Uptime is also important to get the full benefit of your fleet.  

If you need further advice and clarification on how to use your Section 179 deductions, talk to your salesperson at Mercedes-Benz of Plano and your tax accountant. They can provide you with guidance towards making these deductions on your 2025 taxes.  

The deadline to take advantage of the Section 179 tax incentives on your new fleet is December 31, 2025. It is best to act soon, as Mercedes-Benz of Plano has an inventory of qualified vehicles available to add to your fleet. Contact us to schedule an appointment to discuss your next business vehicle purchase soon.