Mercedes-Benz Section 179 Tax Deduction
The right time to enlist a Mercedes-Benz van in your business's fleet is now. Not only does our Mercedes-Benz dealership near Westfield boast new Sprinter vans for sale, but we can pair you with the Section 179 tax incentive for incredible savings on the commercial vehicle your company requires. What is Section 179, exactly? It's a tax credit developed by the U.S. government to help small- and medium-sized businesses save on operating expenses, particularly vehicle costs.1
Under Section 179, you can write off up to 100% of the purchase price of an eligible vehicle from your business's end-of-year taxes.1 You must put your vehicle into service by December 31, 2026, to qualify, though, so stop in soon before it's too late!1
2026 Section 179 Tax Deduction Limits & Eligibility
As the Section 179 tax deduction is aimed to benefit small- to medium-sized businesses, there are strict criteria that must be met. The 2023 Section 179 tax savings qualifications include:
2026 Deduction Limit: $2,560,0001
- Good on new and used equipment (as long as new to the buyer)
- Purchased or leased
2026 Spending Cap: $4,090,0001 -- 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 (making it a true small-business incentive)
- Deduction begins to be reduced on a dollar-for-dollar basis -- this cap is what makes it a "small business tax incentive"
- Complete phase-out at $6,650,000
2026 Bonus Depreciation: 100%1
- Defined as: a tax incentive that allows a business to immediately deduct a large percentage of the purchase price of eligible assets
- Generally taken after the Spending Cap is reached
- Applies to new and used
- Must be purchased and put into use before Dec. 31, 20261
- Must be used for business purposes more than 50% of the time
- Must be titled in the company's name (not the company's owner's name)
Which Mercedes-Benz Models Qualify for Section 179?
The Section 179 tax incentive offers savings on new Mercedes-Benz vans in Union designed for commercial use, like the Sprinter. Sprinter models that qualify for Section 179 include:
- Mercedes-Benz Sprinter Cargo Van
- Mercedes-Benz Sprinter Crew Van
- Mercedes-Benz Sprinter Passenger Van
A vehicle's eligibility for Section 179 depends largely on its gross vehicle weight rating (GVWR) and how it's used for your business. In general terms, heavier work-oriented vehicles receive more favorable treatment, while lighter passenger vehicles are subject to stricter limits.
New & Used Vocational Trucks and Vans: Full Section 179 deduction available1
Heavy SUVs & Trucks (Over 6,000 lbs. GVW) (excludes some pickups/vans): $32,000 maximum Section 1791
Cars, Light Trucks & SUVs (Under 6,000 lbs.): Subject to IRS "luxury auto" depreciation limits (Section 280F)1
How Do I Use the Section 179 Tax Incentive?
Taking advantage of Section 179 starts with choosing a qualifying Mercedes-Benz and placing it into business use before December 31, 2026. You'll generally need to document that the vehicle is used for business purposes more than 50% of the time and that it's titled in your company's name rather than a personal name.1
Our auto finance team can guide you through selecting an eligible vehicle and help you apply for financing with competitive loan or lease terms, though your accountant or tax professional should always confirm the exact deduction you can claim.
Mercedes-Benz Commercial Vans Near Me
For more information about Mercedes-Benz vehicles that qualify for tax savings, contact Mercedes-Benz of Union. No matter the type of new Sprinter van that'd be best for your business's operations, we're here to answer all your questions and get you the keys in no time. Take advantage of the Section 179 tax deduction in New Jersey for exceptional savings on a commercial Mercedes-Benz.
1 Information accurate at the time of publishing. Refer to https://www.section179.org for the most current specifics.
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