Ford Section 179 Tax Deduction in New Bedford, MA

2025 Section 179 Tax Deduction Overview & Limits

Understanding how the 2025 Section 179 tax deduction works for pre-owned vehicle purchases is essential for small business owners focused on ROI. This federal incentive offers local companies in New Bedford the chance to deduct major equipment purchases — like commercial trucks, vans, and SUVs — that are used for business purposes more than 50% of the time.

With spending caps in place to ensure this remains a true small-business advantage, Section 179 is one of the top auto tax benefits for entrepreneurs in Massachusetts and those seeking competitive commercial vehicle financing options. The full deduction is available only for equipment both purchased and put into service before December 31.

• 2025 Deduction Limit: $2,500,000¹
  • Good on used equipment (as long as new to the buyer)
  • Purchased or leased

• 2025 Spending Cap: $4,000,000¹
  • 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)
  • Complete phase-out at $6,500,000

• 2025 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 used vehicles as well as new

Pre-owned vehicle Section 179 eligibility includes:

• Must be purchased and put into use before Dec. 31¹
• 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)