As part of the IRS tax code, Section 179 allows you to deduct the full purchase price of qualifying equipment bought or financed and put into service between January 1, 2024 and the end of the day on December 31, 2024. This credit, available for the purchase of new and preowned vehicles used for business purposes at least 50% of the time, allows businesses to take an immediate deduction to lower their current-year tax liability rather than depreciate the vehicle over time in future tax years.

Even if the vehicle is used less than 100% of the time for business purposes only, the deduction will decrease proportionally still allowing you to take advantage of this credit. For example, assume you spent $60,000 on a new or used vehicle for your business in 2024. If you use the vehicle for business purposes 80% of the time, you could take a $48,000 deduction ($60,000 × 0.80) on your 2024 tax return. 

Section 179 at a Glance for 2024

Deduction Limit = $1,220,000
For most small and medium-sized businesses, the entire cost of eligible equipment can be written-off on the 2024 tax return up to $1,220,000.

Spending Cap = $3,050,000
The spending cap on equipment purchases is $3,050,000. This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar-for-dollar basis.

Bonus Depreciation = 60% 
Bonus Depreciation is a tax incentive designed to stimulate business investment by allowing business owners to write off a large percentage of equipment costs in the first year it was purchased, rather than write them off over multiple years using traditional depreciation methods. For 2024, Bonus Depreciation is being offered at 60%. Bonus Depreciation, an additional first-year depreciation allowance, is generally taken after the Section 179 spending cap of $3,050,000 is reached. 


Bonus Depreciation - also known as the additional first-year depreciation deduction or the 168(k) allowance - allows businesses to write off a large percentage of an eligible vehicle's cost in the first year it was purchased. The remaining cost can be deducted over subsequent tax years using standard depreciation methods. 

While Bonus Depreciation and Section 179 are both immediate expense deductions, Bonus Depreciation allows business owners to deduct a percentage of a vehicle's cost upfront. In contrast, Section 179 allows taxpayers to deduct a set dollar amount. Again, because there are additional notable differences, it is important to consult with a qualified financial advisor concerning your specific situation.



Bonus Depreciation Explained

Ram ProMaster

Ram, Dodge, and Chrysler Eligible Vehicles

Ram truck

These models exceed the required 6,000 lbs. GVWR and may qualify for Section 179 deduction. However, the exact amount is contingent on multiple factors including stated use, type of vehicle, trim level, truck bed length, and installed equipment. Because of this, it is advisable that you consult your tax professional regarding Section 179 and vehicle eligibility.

  • Dodge Durango Specific Models
  • Dodge Grand Caravan
  • Ram 1500
  • Ram 1500 Classic
  • Ram 2500 and 3500
  • Ram 3500, 4500 and 5500 Chassis Cab
  • Ram ProMaster