Business Tax Incentives

Maximize Your Business Tax Savings in 2025 with Section 179

At Holloway Cadillac, we understand how important it is for business owners to take full advantage of tax incentives like Section 179. For the 2025 tax year, businesses can deduct up to $1,250,000 on qualifying vehicle purchases, providing a significant opportunity for tax savings. Here’s what you need to know:

What Is the Maximum Section 179 Deduction for 2025?

In 2025, businesses can deduct up to $1,250,000 on qualifying purchases. This deduction allows you to write off the entire purchase amount upfront, provided your new Cadillac vehicle meets the following criteria:

• Placed in service during the 2025 tax year.
• Used for business purposes more than 50% of the time.
• Meets IRS guidelines for qualification.

Spending Cap and Phase-Out Rules

The Section 179 deduction begins to phase out when total equipment purchases exceed $3,130,000. Here’s how it works:

• Dollar-for-dollar reduction on purchases above $3,130,000.
• Full phase-out at $4,380,000.
• Bonus Depreciation may still apply to any additional purchases above these limits.

How Does Section 179 Apply to Business Vehicles?

When it comes to vehicles, special rules apply:

Vehicles rated 6,000 lbs. GVWR or less follow standard depreciation rules.

SUVs over 6,000 lbs. GVWR but under 14,000 lbs. GVWR: The Section 179 deduction is limited to $31,300:

• Cadillac Escalade
• Cadillac Escalade ESV
• Cadillac Escalade IQ

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