If you own a business in Kansas and need a reliable work vehicle, the Section 179 tax deduction can help you save thousands of dollars. This powerful tax incentive allows businesses to deduct the full purchase price of qualifying equipment and vehicles, including Ram trucks and commercial vehicles, in the year they are placed into service.

At Flint Hills Chrysler Dodge Jeep Ram in Manhattan, Kansas, we help business owners throughout the region, including Fort Riley and Junction City, take advantage of Section 179 to invest in the vehicles they need while reducing their tax burden.

What Is Section 179 and How Does It Work?

Section 179 is a tax code provision that allows businesses to deduct the full purchase price of qualifying equipment and vehicles in the year of purchase, rather than depreciating the asset over several years. This immediate deduction can significantly reduce your taxable income and lower your tax bill.

For 2024, the Section 179 deduction limit is $1,220,000, with a spending cap of $3,050,000. This means your business can deduct up to $1,220,000 in qualifying vehicle and equipment purchases, as long as your total spending does not exceed $3,050,000. Vehicles that qualify for Section 179 include those with a Gross Vehicle Weight Rating (GVWR) of over 6,000 pounds. This includes many Ram trucks, commercial vans, and heavy-duty work vehicles.

The best part is that Section 179 applies to both new and used vehicles, giving you flexibility in choosing the right vehicle for your business needs. Whether you purchase a brand-new Ram 2500 or a quality used Ram truck, you may qualify for this valuable deduction.

To claim the Section 179 deduction, the vehicle must be used for business purposes more than 50 percent of the time. You will also need to have the vehicle in service by December 31 of the tax year in which you plan to claim the deduction.

For more information on qualifying vehicles, visit our new commercial inventory page.

Which Ram Trucks Qualify for Section 179?

Many Ram trucks and commercial vehicles qualify for the Section 179 deduction because they meet the GVWR requirement of over 6,000 pounds. Here are some popular models that Kansas businesses choose:

Ram 2500 and 3500: These heavy-duty trucks are workhorses built for demanding jobs. With powerful engine options, impressive towing capacity, and durable construction, the Ram 2500 and Ram 3500 are ideal for construction, agriculture, and transportation businesses.
Ram Chassis Cab: If your business requires a custom upfit for specialized equipment, the Ram Chassis Cab provides the perfect foundation. These trucks are available in 3500, 4500, and 5500 configurations, offering maximum flexibility for your business needs.
Ram ProMaster: This versatile commercial van is perfect for delivery services, contractors, and mobile businesses. The Ram ProMaster offers ample cargo space, excellent fuel efficiency, and a low load floor for easy access.
Ram 1500 (certain configurations): While not all Ram 1500 models qualify, certain configurations with higher GVWR ratings may be eligible for Section 179. Our sales team can help you identify qualifying models.

Visit our Ram inventory to explore all available options.

How Much Can Your Business Save with Section 179?

The savings from Section 179 can be substantial, depending on your tax bracket and the purchase price of your vehicle. Here is an example:

Let's say your Kansas business purchases a 2025 Ram 2500 for $60,000 and uses it 100 percent for business purposes. With Section 179, you can deduct the full $60,000 from your taxable income in the first year.

If your business is in the 25 percent tax bracket, this deduction could save you $15,000 in federal taxes alone. Add in potential state tax savings, and the total benefit becomes even more significant.

This immediate deduction not only reduces your tax liability but also improves your cash flow, allowing you to invest more in growing your business. Instead of waiting years to fully depreciate the vehicle, you get the tax benefit upfront when you need it most.

It is important to note that while Section 179 provides significant tax savings, you should always consult with a tax professional to ensure you are maximizing your deductions and complying with all IRS regulations.

Our finance department can also help you explore financing options that work with your Section 179 strategy, making it easier to afford the vehicle your business needs.

Additional Tax Benefits: Bonus Depreciation

In addition to Section 179, businesses may also qualify for bonus depreciation. This allows you to deduct an additional percentage of the vehicle's cost after applying Section 179. While bonus depreciation rates can change based on current tax law, it provides another opportunity to maximize your tax savings.

Combining Section 179 with bonus depreciation can help you deduct the entire cost of your qualifying vehicle in the first year, making it one of the most powerful tax strategies available to business owners.

For more information on tax incentives and special programs, visit our special programs page.

Why Choose Flint Hills Chrysler Dodge Jeep Ram for Your Business Vehicle Needs?

At Flint Hills Chrysler Dodge Jeep Ram, we understand the unique needs of Kansas business owners. Our commercial vehicle specialists are here to help you find the right truck or van for your operation, whether you are running a small contracting business or managing a large fleet. We offer a wide selection of new commercial vehicles and used work trucks, giving you options that fit your budget and business requirements.

Our finance team is experienced in working with business owners and can help you structure a purchase that maximizes your Section 179 benefits. We also offer competitive financing rates and flexible terms to make your purchase as affordable as possible. You can get pre-approved online before visiting our dealership.

After your purchase, our service department is here to keep your vehicle running smoothly. We offer fleet maintenance programs, extended service hours, and priority scheduling for business customers, minimizing downtime and keeping your operation moving. We also provide access to commercial brochures that detail the specifications and capabilities of our commercial vehicles, helping you make informed decisions.

Frequently Asked Questions

What is the Section 179 deduction limit for 2024?
For 2024, the Section 179 deduction limit is $1,220,000, with a spending cap of $3,050,000. This allows businesses to deduct the full purchase price of qualifying vehicles and equipment

Do Ram trucks qualify for Section 179?
Yes, many Ram trucks qualify for Section 179, including the Ram 2500, Ram 3500, Ram Chassis Cab models, and certain Ram 1500 configurations with a GVWR over 6,000 pounds.

Can I use Section 179 for a used vehicle?
Yes, Section 179 applies to both new and used vehicles, as long as they meet the GVWR requirement and are used primarily for business purposes.

How much business use is required to qualify for Section 179?
The vehicle must be used for business purposes more than 50 percent of the time to qualify for the full Section 179 deduction.

Where can I buy a Section 179 qualifying vehicle in Kansas?
You can purchase Section 179 qualifying vehicles at Flint Hills Chrysler Dodge Jeep Ram, located at 3100 Anderson Avenue in Manhattan, Kansas. We serve business owners throughout the region, including Fort Riley and Junction City.

Visit Flint Hills Chrysler Dodge Jeep Ram today to explore our commercial vehicle inventory and learn how Section 179 can help your business save big.

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