TAX DEDUCTIONS FOR TEMPE AREA BUSINESS OWNERS

Small business owners may claim up to $1,000,000 tax deduction on vehicle purchases

The Section 179 Deduction was enacted as part of the IRS tax code in 2008 to help small businesses with their vehicle and equipment purchases. With the passage and signing into law of H.R.1, aka, The Tax Cuts and Jobs Act, the deduction limit for Section 179 increases to $1,000,000 for 2021 and beyond1. This law allows your commercial and fleet customers to claim up to the full purchase price on an unlimited number of qualifying Buick and GMC vehicles as a tax deduction.

ALLOWABLE DEDUCTION AMOUNT

The amounts that can be deducted depend on the vehicles purchased. For example, passenger vehicles bought by a business may qualify for deductions up to $18,1002 or 100% of the purchase price3. A business that spends up to $2,030,000 on multiple vehicles can take a deduction of up to $1,000,000. See the allowed amounts for each eligible Buick and GMC vehicle below.

UP TO $18,1002

GMC Terrain

GMC Terrain Denali

GMC Canyon

GMC Canyon Denali

Buick Encore

Buick Envision

UP TO 100% OF PURCHASE PRICE3

GMC Sierra 1500

GMC Sierra 1500 Denali

GMC Sierra 2500HD

GMC Sierra 2500HD Denali

GMC Sierra 3500HD

GMC Sierra 3500HD Denali

GMC Chassis Cab

GMC Acadia

GMC Acadia Denali

GMC Yukon

GMC Yukon Denali

GMC Yukon XL

GMC Yukon XL Denali

GMC Canyon Crew Cab 4WD

Buick Enclave

ADDITIONAL SECTION 179 FACTS

  • Vehicles must be placed in service during the 2023 tax year to be eligible
  • Vehicle titles must be in the company's name
  • An eligible vehicle must be used for business at least 50% of the time
  • Businesses can still take advantage of other incentives and Business Choice offers in addition to these tax savings

For more information, please visit 

www.GMC.com/tax-deductions | www.Buick.com/tax-deductions | www.irs.gov

1. Each individual's tax situation is unique; therefore, please consult your tax professional to confirm vehicle depreciation deduction and tax benefits. For more details, visit www.irs.gov.

2. Passenger automobiles as defined under the Internal Revenue Code (including sport utility vehicles, trucks and crossovers with a GVWR of 6,000 lbs. or less) and placed in service during 2023 qualify for immediate depreciation deductions of up to $18,100 per vehicle.

3. Trucks, vans and sport utility vehicles as defined in the Internal Revenue Code with a GVWR over 6,000 lbs. and placed in service during 2023 qualify for immediate depreciation deductions of up to 100% of the purchase price. 

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