Business owners can take advantage of major tax savings this year through Section 179 and bonus depreciation when purchasing qualifying Mercedes-Benz vehicles from Mercedes-Benz of Hoffman Estates. Whether you’re adding vans to your fleet or upgrading your executive SUV, these tax incentives can help lower your taxable income while you invest in your business. Now is the ideal time to put your vehicle into service and make the most of these benefits before the year ends.
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying vehicles and equipment in the year they are placed in service, rather than spreading depreciation over several years. For 2025, the deduction limit is up to $1,050,000, making it one of the most valuable tools available to business owners looking to reduce their taxable income.
This incentive was designed to encourage businesses to reinvest in themselves. When you purchase or finance an eligible Mercedes-Benz vehicle for business use, you can write off a significant portion—or in some cases, the entire cost—of the vehicle during the same tax year.
Vehicles must be used at least 50% for business purposes and placed in service by December 31, 2025 to qualify.
Many Mercedes-Benz models meet the requirements for Section 179 deductions or bonus depreciation. The actual deduction amount depends on the vehicle’s GVWR and the percentage of business use. Common qualifying models include:
Mercedes-Benz vans are some of the most popular choices for Section 179 deductions thanks to their generous weight ratings and business versatility. Most Sprinter models exceed the 6,000-pound GVWR threshold, making them fully eligible for the deduction when used primarily for business.
Sprinter Cargo Van: Ideal for tradespeople, delivery services, and mobile businesses that need significant cargo capacity. With multiple roof heights and wheelbase options, it easily meets the GVWR requirement and can qualify for the full deduction.
Sprinter Crew Van: Combines passenger seating with cargo space, making it perfect for businesses that need to transport both employees and equipment.
Sprinter Passenger Van: Designed for shuttle, transport, and hospitality use, this model offers seating for up to 15 passengers while meeting Section 179 eligibility for full or partial deduction.
eSprinter Van: The all-electric eSprinter also qualifies for Section 179, offering the same cargo space and usability as its gas-powered counterpart while helping your business lower operating costs and reduce emissions.
These vans are engineered for commercial performance, reliability, and adaptability, allowing businesses to customize them with shelving, partitions, or upfits that may also qualify under Section 179.
Several Mercedes-Benz SUVs may qualify for partial deductions under Section 179 depending on their weight and business usage. These models combine luxury with functionality, giving professionals a vehicle that makes a strong impression while still serving as a legitimate business asset.
G-Class SUV: With its rugged build and GVWR exceeding 6,000 lbs, the G-Class is one of the few luxury SUVs that can qualify for significant Section 179 deductions. Its off-road capability and professional appeal make it a popular choice among executives and contractors alike.
GLS SUV: The largest Mercedes-Benz SUV offers spacious three-row seating and strong towing capacity. Depending on configuration, many GLS models exceed the 6,000 lbs GVWR threshold, allowing a portion of the purchase price to be deducted under Section 179.
Select GLE SUV Models: Certain GLE trims also exceed 6,000 lbs GVWR and can qualify for partial deductions. Always confirm the GVWR and business-use percentage with your tax advisor before claiming.
While the deduction for SUVs is capped compared to heavy commercial vans, they can still provide substantial tax benefits for professionals using them for business purposes.
Bonus depreciation (IRS Section 168(k)) allows businesses to deduct an even larger percentage of the purchase price for qualifying vehicles that exceed specific weight ratings. Depending on the vehicle’s Gross Vehicle Weight Rating (GVWR), bonus depreciation can provide up to 100% first-year depreciation on eligible models.
Bonus depreciation can also be applied after Section 179 deductions have been taken, allowing for additional savings. It’s a powerful tool for businesses purchasing heavier vehicles such as vans or large SUVs. Always confirm your eligibility with your tax professional to determine how these incentives work for your specific situation.
Purchase or Finance an Eligible Vehicle
Choose a qualifying model from Mercedes-Benz of Hoffman Estates and place it in service before December 31 of this year.
Use the Vehicle for Business 50% or More
Only the business-use percentage of the vehicle’s cost is eligible for deduction.
Complete the IRS Form 4562
Work with your accountant or tax advisor to file the proper forms with your tax return.
Deduct and Save
The deduction reduces your taxable income for the year, freeing up capital to reinvest in your business.
For example, a company purchasing a $75,000 Sprinter Van and using it entirely for business could deduct the full purchase price in 2025 under Section 179, subject to IRS limits.
Can I claim Section 179 if I finance my vehicle?
Yes. Section 179 applies whether you purchase your Mercedes-Benz vehicle outright or finance it, as long as it’s placed in service during the tax year and used for business 50% or more of the time.
Do vehicle upfits or equipment installations qualify?
Yes. Many business-related upfits or modifications made at the time of purchase, such as shelving, partitions, or custom interiors, may also qualify under Section 179. Be sure to keep documentation for all additions.
Can multiple vehicles be deducted in the same year?
Yes. Businesses can deduct the total cost of all qualifying vehicles and equipment purchased within the tax year, up to the current Section 179 limit.
Are leased vehicles eligible for Section 179?
Traditional leases usually don’t qualify because ownership doesn’t transfer, but certain capital lease structures may be eligible. Your tax professional can confirm your specific situation.
Does the Section 179 deduction apply to electric vehicles?
It can. The Mercedes-Benz eSprinter Van qualifies for Section 179 as long as it’s used primarily for business. Businesses may also be eligible for additional federal or state EV incentives depending on location.
What’s the difference between Section 179 and bonus depreciation?
Section 179 allows you to deduct the cost of qualifying property up to a fixed annual limit, while bonus depreciation lets you deduct a percentage of the remaining cost. Many businesses use both in the same year for maximum savings.
Is the Section 179 deduction guaranteed every year?
No. Tax laws can change annually, so deduction limits and eligibility rules may vary. Always consult your tax advisor before making purchase decisions.
To take full advantage of Section 179 and bonus depreciation this year, your vehicle must be purchased and placed into service before December 31. Don’t wait until the last minute—our team at Mercedes-Benz of Hoffman Estates is ready to help you find the right vehicle for your business and ensure it qualifies for potential deductions.
Contact us today to speak with a commercial specialist or explore our available Sprinter and SUV inventory. Let’s help you make this tax season work to your advantage.
