Tax Incentive for Commercial Truck Purchases in Michigan

POTENTIAL TAX BREAKS WHEN YOU BUY A NEW FORD COMMERCIAL VEHICLE IN 2025

If you’re a business owner in Michigan looking to purchase a new Ford commercial vehicle, the IRS Section 179 deduction and Bonus Depreciation could help you significantly reduce your 2025 tax burden.

Under current tax law, many small and medium-sized businesses may be eligible to deduct the full purchase cost of qualifying new or used vehicles in the same year they’re put into service—rather than depreciating the expense over multiple years.

This powerful incentive applies to a wide range of Ford trucks and vans used for business purposes, making it easier to invest in your fleet while boosting your bottom line.

WHAT ARE THE 2025 SECTION 179 LIMITS?

According to NerdWallet, the IRS has increased the Section 179 deduction for 2025:

• Maximum Section 179 deduction: $2,500,000
• Phase-out threshold: Begins at $4,000,000 in total qualifying equipment purchases
• Vehicles must be purchased and placed into service by December 31, 2025
• Must be used at least 50% for business, based on mileage, in the first year

BONUS DEPRECIATION FOR 2025

In addition to Section 179, Bonus Depreciation allows businesses to deduct a portion of the remaining vehicle cost after the Section 179 limit is reached. For 2025, the bonus depreciation rate is 40%, and it applies to both new and used qualifying assets.

This is especially helpful for larger fleet purchases or when your Section 179 deduction has been maxed out.

VEHICLE ELIGIBILITY RULES

Vehicles that may qualify for full Section 179 expensing include:

• Heavy-duty trucks and vans with a GVWR over 6,000 lbs (e.g., Ford Super Duty®, Transit Vans)
• Vehicles with limited personal-use design, such as:
  1. Seating for nine or more passengers behind the driver
  2. Cargo beds of at least six feet in interior length
  3. Fully enclosed cargo vans with no rear passenger seating

These are considered qualified non-personal use vehicles and are not subject to reduced depreciation limits.

Light-duty vehicles (≤ 6,000 lbs GVWR) have stricter caps:

• First-year depreciation limit: $12,200
• Additional depreciation (under MACRS) may apply in future years

IS THERE A DEADLINE?

Yes. To claim the 2025 Section 179 deduction or bonus depreciation:

• The vehicle must be purchased and placed into service between January 1 and December 31, 2025
• It must be used more than 50% for business during its first year in use

A WORD OF CAUTION

The information provided here is a public service by your local Ford Dealer and should not be considered tax advice. Tax regulations change regularly, and individual business circumstances vary.

To ensure your purchase qualifies, please consult a licensed tax advisor or CPA. You can also find official information at www.irs.gov.

FOOTNOTE

1. Under Section 168(k) and Section 179 of the Internal Revenue Code, eligible businesses may deduct the cost of qualifying business vehicles placed into service in the tax year. Limits apply based on vehicle weight, type, and business usage. Passenger vehicles under 6,000 lbs GVWR are subject to lower depreciation caps. Always consult your tax advisor for specific guidance on eligibility and compliance.