Section 179 Tax Deduction: What You Need to Know for 2025

If you’re a business owner in San Jose, Santa Clara, or anywhere in Northern California, including the Bay Area and surrounding communities, you may already be familiar with Section 179 of the IRS tax code. At Mission Valley Ford Trucks in San Jose, we want to ensure that businesses throughout the Bay Area understand how this valuable tax deduction works, especially with the recent changes introduced by the One Big Beautiful Bill (OBBB) passed in 2025.

Section 179 Tax Deduction: What You Need to Know for 2025

Section 179 allows businesses to deduct the cost of qualifying vehicles from their taxable income. Instead of depreciating the cost over several years, businesses can claim the deduction in the year the asset is purchased. This is especially beneficial for businesses looking to offset the cost of new equipment or vehicles.

To qualify for the deduction:

• The vehicle must be used primarily for business purposes (more than 50%).
• The vehicle must be purchased and put into use during the tax year.
• The vehicle must have a Gross Vehicle Weight Rating (GVWR) over 6000lb.

For Ford trucks like the F-150, F-250, and Super Duty models, this deduction can significantly reduce the upfront cost of purchasing a new vehicle for your business.

What Has Changed with the One Big Beautiful Bill (OBBB)?

The One Big Beautiful Bill (OBBB) signed into law in 2025 has made some significant updates to the Section 179 tax deduction, particularly for California businesses. Here’s a look at the key changes:

Restoration of 100% Bonus Depreciation

The OBBB restores 100% bonus depreciation for vehicles and equipment purchased after January 19, 2025. This allows businesses to deduct the full cost of qualifying vehicles in the year of purchase, instead of spreading it over multiple years.

Increased Deduction Limits

For 2025, the Section 179 deduction limit is raised to $1.16 million. This applies to qualifying vehicles, including Ford F-150 and F-250 trucks used for business.

Expanded Eligibility for Larger Vehicles

The OBBB expands eligibility for vehicles over 6,000 pounds (like Ford Super Duty trucks and Ford Transit vans), allowing businesses to claim the full Section 179 deduction on these heavy-duty vehicles.

Simplified Process

The new law makes claiming Section 179 deductions simpler for businesses in California and beyond by removing previous restrictions and reducing paperwork.

What Has Stayed the Same with the One Big Beautiful Bill (OBBB)?

While the OBBB introduced some important changes, several aspects of Section 179 remain the same, including:

Vehicle Use Requirement

To qualify for the deduction, the vehicle must be used over 50% for business. If the vehicle, like a Ford truck, is used for both business and personal purposes, only the business-use portion can be deducted.

Vehicle Weight Restrictions

SUVs and trucks with a GVWR over 6,000 pounds, like Ford Super Duty trucks and Ford Transit vans, are eligible for the full Section 179 deduction.

Eligibility for Used Vehicles

Used vehicles also qualify for Section 179, as long as they meet the business use and weight requirements.

Why Does This Matter for California Businesses?

With the One Big Beautiful Bill (OBBB) changes, California business owners in San Jose, Fremont, Sunnyvale, and surrounding areas can now take advantage of a more generous Section 179 deduction. If you’ve been considering investing in a new Ford truck or commercial vehicle, now is the best time to make the purchase and maximize your tax savings. Whether you need a crew cab, flatbed, or box truck, these vehicles can help grow your business while providing significant tax relief.

Take Advantage of Section 179 at Mission Valley Ford Trucks

At Mission Valley Ford Trucks in San Jose, CA, we offer a wide range of Ford trucks and commercial vehicles that are perfect for businesses of all sizes. Whether you’re looking for a Ford Super Duty or a Ford Transit, our team is ready to help you find the right vehicle to fit your business needs as well as take full advantage of Section 179.

Visit us today or contact our team to learn more about how you can benefit from Section 179 and the One Big Beautiful Bill (OBBB) changes. For detailed and official tax information, be sure to visit the IRS Section 179 Page or consult with your tax advisor.

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