Section 179 Savings

If you’re a business owner in California looking to upgrade your vehicle fleet, the Section 179 tax deduction offers a powerful incentive to invest in eligible vehicles before the end of the year. At Genesis of Ontario, we’re here to help you take full advantage of this opportunity with select models that may qualify for significant tax savings.

What Is Section 179?

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment—including certain vehicles—purchased or financed during the tax year. Instead of depreciating the cost over several years, you can deduct the entire amount in the year of purchase, up to the IRS limit.

For 2025, the deduction limits are:

• Maximum Deduction: $2,500,000
• Phase-Out Threshold: Begins at $4,000,000 and phases out completely at $6,500,000
• SUV Deduction Cap: $31,300 for vehicles with a GVWR over 6,000 lbs

Which Genesis Vehicles May Qualify?

Some Genesis models may qualify for Section 179 if used for business purposes and meet IRS guidelines. Eligibility depends on the vehicle’s gross vehicle weight rating (GVWR) and how it’s used.

Potentially eligible models include:

• Genesis GV80 – Check GVWR to confirm eligibility for SUV deduction cap
• Genesis GV70 – May qualify if GVWR exceeds 6,000 lbs
• Electrified GV70 – Business-use EVs may qualify for Section 179 and additional clean vehicle credits

We recommend consulting your tax advisor to confirm eligibility based on your business use and vehicle specifications.

Deadline to Claim Section 179 for 2025

To qualify for the 2025 tax year, your vehicle must be:

• Purchased or financed by December 31, 2025
• Placed into service before the end of the year
• Used for business purposes more than 50% of the time

Bonus Depreciation – Additional Tax Savings

In addition to Section 179, businesses may also qualify for 100% bonus depreciation on eligible vehicles. This applies to new and used equipment and can be used after the Section 179 limit is reached.

Bonus depreciation is especially helpful for high-value purchases or businesses exceeding the Section 179 cap.