Running a business is all about making smart investments.
For many companies, trucks and heavy equipment are not just tools — they’re the backbone of operations. But did you know that when you purchase qualifying equipment, you can also get significant tax savings through Section 179 of the IRS Tax Code?
With the year winding down, now is the time to understand how this deduction works, what it covers, and how you can leverage it before December 31st.
What is Section 179?
Section 179 allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. Instead of writing off the cost of a truck over many years through depreciation, you can deduct the entire cost in the same year you put it into service.
For 2025, the deduction limit remains generous, giving businesses the chance to save tens of thousands in taxes depending on the size of their purchase.
Why Section 179 Matters for Truck Buyers
For companies in industries like waste management, construction, and logistics, the cost of a new or used truck is significant. Section 179 helps offset that cost by lowering your tax bill.
For example, let’s say you purchase a new CARB-compliant Mack or Freightliner hooklift truck for $200,000. Instead of spreading out the write-off over 7–10 years, you could potentially deduct the entire $200,000 this tax year — dramatically reducing your taxable income.
This is especially valuable as more states adopt California CARB standards, which are changing the rules on emissions and equipment eligibility. Trucks that meet these requirements, like the Freightliners and Macks we stock at QTE, aren’t just future-proof — they’re also tax-deduction friendly.
Who Qualifies for Section 179?
Most small and mid-sized businesses qualify as long as the equipment is:
Purchased and put into service within the tax year.
Used for business purposes more than 50% of the time.
Tangible equipment like vehicles, machines, and software.
Trucks are a perfect example of qualifying equipment. Whether you’re adding to your fleet or replacing older units, your purchase can work double-duty: keeping your operations running and cutting your tax bill.
Bonus Benefits Beyond Tax Savings
While the upfront tax deduction is the main draw of Section 179, there are hidden advantages as well. Being able to deduct a large purchase right away helps you:
Improve Cash Flow – Less money going to the IRS means more available for payroll, fuel, and operations.
Stay Competitive – Newer trucks with updated emissions and technology can reduce downtime, fuel costs, and maintenance.
Future-Proof Your Fleet – CARB-compliant trucks position you for regulations that are expanding in more states every year.
This isn’t just about saving on taxes — it’s about positioning your business for long-term success.
Real-World Example
Let’s put it into perspective. Imagine you purchase a $180,000 Mack hooklift truck in November 2025.
-
Without Section 179, you’d depreciate the truck slowly over 7–10 years.
-
With Section 179, you could deduct the entire $180,000 this year.
-
If your business is in a 24% tax bracket, that deduction could save you $43,200 in taxes immediately.
That’s money that could go back into your operations, cover employee wages, or fuel your growth into 2026.
Final Thoughts
Section 179 is one of the most powerful tools businesses have for reducing tax liability while investing in the equipment they need to grow. If you’re considering a truck purchase, don’t wait until the last minute — the deadline is December 31st, and inventory is moving quickly.
At QTE, our team is ready to walk you through the best options, from CARB-compliant Freightliners and Macks to financing solutions that work for your budget.
Contact us today to find out more!
