2025 RAM 179 Tax Deductions

What is the Section 179 Deduction?

The Section 179 Tax Deduction is one of the most valuable incentives available to small and medium-sized businesses in the United States. It allows business owners to deduct the full purchase price of qualifying equipment or software that is purchased or financed and put into service during the tax year. For 2025, this means your business can write off up to $2,500,000 worth of qualifying purchases, as long as the equipment is placed in service by December 31, 2025. The intent of this deduction is to encourage investment in businesses by accelerating tax write-offs.

The purpose of Section 179 is to encourage businesses to invest in themselves by purchasing new or used business equipment. Instead of depreciating an asset over several years, businesses can deduct the entire cost in the same year it’s placed in service. This helps free up cash flow and allows companies to reinvest in growth.

 ELIGIBLE VEHICLES 

Important Considerations & Restrictions

In 2025, the total amount that can be expensed under Section 179 is capped at $2.5 million. Once a business’s total equipment purchases exceed $4 million, the deduction begins to phase out dollar-for-dollar and is completely phased out at $6.5 million. This makes Section 179 particularly beneficial for small and mid-sized businesses rather than large corporations.

• The deduction is limited to the amount of taxable income from business activities; losses may require carry-forward.
• If business-use drops to 50% or below in any subsequent year, recapture of part of the deduction may apply.
• Exceeding the total-purchase thresholds will reduce or eliminate the deduction.
• State tax treatment may differ from federal rules; some states do not conform to or limit Section 179.
• Vehicles, listed property, and leased property may have additional restrictions.
• Always consult with your tax advisor to confirm eligibility for your business.

NOTE: The information supplied here is provided by your local Chrysler, Dodge, Jeep, Ram Dealer as a public service to its customers. It should not be construed as tax advice or as a promise of potential tax savings or reduced tax liability. Individual tax situations may vary. Federal rules and tax guidelines are subject to change. For more information about the Section 179 expense write-off or other business vehicle expense write-offs, you should consult your tax advisor for complete rules applicable to your transaction and visit the Internal Revenue Website at www.irs.gov.