What is Section 179?

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying vehicles during the tax year. This deduction helps businesses reduce their taxable income, offering significant savings. For 2025, up to $2,500,000 in qualifying assets can be expensed, though this amount begins to phase out dollar-for-dollar after spending $4,000,000 on qualified assets. To qualify, equipment must be purchased and placed into service between January 1, 2025, and December 31, 2025.

After the Section 179 deduction is applied, businesses can take additional Bonus Depreciation, which has been reinstated at 100% for 2025 under H.R. 1 (effective for tax years beginning after December 31, 2024). Bonus Depreciation benefits larger businesses exceeding the Section 179 spending limit or those with net losses, as unused deductions can be carried forward.

Businesses may qualify if they meet the following criteria:

• Purchase or finance qualifying equipment: This includes new or used equipment and certain vehicles.
• Use the equipment predominantly for business: The asset must be used more than 50% of the time for business purposes.
• Meet spending limits: Total spending on qualifying: equipment must be less than $4,000,000 in 2025.

What vehicles qualify?

Vehicles with a gross vehicle weight rating (GVWR) between 6,000 and 14,000 pounds may qualify for a maximum first-year deduction of $31,300 (up from $28,900 in 2024).

• Q6 e-tron & SQ6 e-tron
• A6 e-tron & S6 e-tron Sportback
• S8 Sedan
• Q8 55, SQ8 & RSQ8 Performance
• RS6 Avant Performance
• Q7 45, Q7 55 & SQ7

After the Section 179 deduction is applied, businesses can take additional Bonus Depreciation, which has been reinstated at 100% for 2025 under H.R. 1. Bonus Depreciation benefits larger businesses exceeding the Section 179 spending limit or those with net losses, as unused deductions can be carried forward.

Consult your tax advisor to determine if you qualify for Section 179 benefits. 

Disclaimers:

Audi Salt Lake City is not an accountant nor provides tax advice. Customers with questions regarding this topic should consult their individual tax adviser to determine their eligibility for this deduction. Information must be verified with a CPA and is listed purely for informational purposes.

Only for qualifying vehicles based on current Section 179 of U.S. tax code and maximum deduction permitted for such vehicles under Section 179. Vehicles must be purchased for business use. 
This information does not constitute, nor is it intended to be, legal, tax, financial planning or investment advice and should not be relied upon as much.

Offer valid through December 31, 2025.