The One Big Beautiful Bill Act (OBBBA) expanded the deductions available for business vehicles in 2025. Timing and vehicle type are critical.
Heavy SUVs, Pickups, and Vans
These vehicles with a gross vehicle weight rating (GVWR) over 6,000 pounds may qualify for:
- 100 percent bonus depreciation
- Section 179 expensing up to $31,300 for SUVs and $2.5 million for trucks and vans
- No luxury limits
Example. A $50,000 SUV used 90 percent for business produces a $45,000 deduction this year.
Standard-Weight Vehicles
Cars (and lighter SUVs with GVWRs of 6,000 pounds or less) face luxury depreciation caps—allowing only up to $20,200 in first-year deductions.
Act Before Year-End
To qualify, you must own the vehicle and place it in service by December 31—meaning it’s ready and being used for business. Driving it even one business mile before midnight proves eligibility.
Note. Electric-vehicle tax credits ended September 30, 2025.
How We Can Help
Sterling Tax and Accounting is here to help your business with tax planning! Our comprehensive approach to tax planning helps reduce your overall tax liability and keep more money in your pocket. If all your accountant does is file your taxes, chances are they are making you pay more than your fair share of taxes.
Learn how to proactively save on taxes by scheduling a call with our tax planning specialists.
Our tax planning, accounting & business services help you stay on track. Sterling Tax & Accounting will work with you to optimize your business and minimize your taxes. We will work to provide you and your business with the tools and resources you need to build a solid tax and business foundation. We’re a trusted CPA Firm in Sarasota, Florida. We serve clients all over the US, and proactively work to minimize their taxes.
Welcome to the Sterling Standard of business! Want to learn more? Schedule a meeting with our tax planning team here:
https://www.sterling.cpa/contact-us/