Section 179 and Maximizing 2025 Tax Incentives: What Truck Owners Should Know
In 2025, a powerful new tax provision offers truck owners and fleet operators an exceptional opportunity: 100% bonus depreciation has been restored and made permanent for qualifying equipment—including used trucks—placed in service after January 19, 2025. This change comes with significant enhancements to Section 179 expensing and interest deductibility, providing immediate cash flow benefits.
What’s Changed in 2025
Under the One Big Beautiful Bill Act, fully signed into law on July 4, 2025, Congress reversed a scheduled phase-out and reinstated 100% bonus depreciation permanently for eligible assets placed in service after January 19, 2025 (Equipment Finance News.) Unlike the 2023–24 phase-down, this retroactive restoration applies not only to new equipment but also to used personal property, including heavy-duty trucks.
How It Differs From Prior Years
- 2018–22: 100% bonus depreciation under the Tax Cuts and Jobs Act (TCJA)
- 2023: Reduced to 80%;
- 2024: Further reduced to 60%;
- 2025–onward: Restored to 100% and made permanent, eliminating future phase-downs (National Tax Group.)
Increased Section 179 Limits
Also included in the law is a raise in the Section 179 deduction cap to $2.5 million, with a phase-out threshold at $4 million (KLR.) Section 179 allows businesses to expense qualifying equipment immediately, while bonus depreciation applies afterward to remaining costs.
Expanded Interest Deductibility
The new legislation restores expanded interest deductibility, allowing businesses to deduct more interest paid on equipment financing—up to 30% of EBITDA. This enhancement helps offset upfront costs and enhances equipment affordability.
Benefits for Truck Owners
Given these changes, the overall tax benefits include:
- Immediate deduction: Full write-off of the truck’s cost (new or used) in the year placed in service
- Improved cash flow: Lower taxable income and freed-up capital for reinvestment
- Flexible financing: Enhanced interest deductions further improve affordability
This is particularly advantageous for owner-operators and small fleets, where used trucks are common and financing plays a key role.
How to Maximize This Benefit
To take full advantage:
- Timing matters: Ensure the vehicle is placed in service after January 19, 2025
- Consult your tax advisor: Properly structure Section 179 and bonus depreciation claims
- Include used trucks: Under the restored rules, both new and used qualify
- Track usage and documentation: For trucks over 6,000 lbs, proper GVWR classification and business-use records are essential
- Plan financing strategically: Take advantage of expanded interest deductibility
The reinstatement of 100% bonus depreciation, paired with an increased Section 179 cap and enhanced interest deductibility, offers truck buyers a powerful opportunity in 2025. By fully expensing the cost of a truck—new or used—this year, businesses can optimize cash flow and tax positioning.
JX Truck Center does not provide tax, legal, or accounting advice. For detailed guidance regarding qualifications, timing, strategy, and specific tax implications, consult your local tax advisor or CPA. Don’t miss this rare opportunity—tax law doesn’t offer these benefits every year.
