Section 179 Deduction FAQ: 2024 Fleet & Company Car Tax Rules

Want to know what the Section 179 expense deduction is, how it works, and if you're eligible to receive a tax break for your company or fleet vehicle in 2024? Read through our commercial car tax FAQ to find answers to all your questions.

What is the Section 179 vehicle tax deduction?

If you own and operate a small business or large corporation, the Section 179 tax program allows you to write off the cost of any company car or fleet vehicle as a taxable business deduction. We recommended discussing your options with a tax professional as well as a member of the Business Certified team at Sullivan Brothers Nissan. Thanks to guidelines under the IRS Section 179 tax code, many small and medium‑sized businesses that invest in new equipment can now write off up to $1,220,000 of these purchases on their 2024 IRS tax returns. In years past, businesses were required to spread these deductions over several years.

How much money can I save with the Section 179 deduction?

Commercial car tax caps for 2024 vary by vehicle weight and business usage rate.

• Passenger cars: $20,000 total deduction per vehicle

• Passenger crossovers, vans & trucks: $24,500 total deduction per vehicle

• Heavy trucks & commercial vans: $30,500 total deduction per vehicle

Which Nissan models qualify as Section 179 vehicles?

The Section 179 tax rules stipulate that any automobile weighing under 14,000 pounds can be deducted as a business expense depending on business usage rate. Therefore, any Nissan vehicle qualifies! Here is a list of eligible Section 179 Nissan models, broken down by maximum deduction:

• $30,500 Deduction: Nissan TITAN, TITAN XD, Armada, NV Passenger, NV Cargo (NV1500, NV2500, NV3500)

• $24,000 Deduction: Nissan Frontier, Rogue Sport, Rogue, Ariya, Murano, Pathfinder, NV200 Compact Cargo Van

• $20,000 Deduction: Nissan LEAF, Versa,, Sentra, Altima, Maxima, 

If you'd like more details about purchasing or leasing your Nissan fleet vehicle near Boston, MA contact or visit the Business Certified team at Sullivan Brothers Nissan.

What is a business usage rate?

Any passenger car, truck, SUV, or van (exceptions apply) that is used for business at least 50% of the time is eligible for the Section 179 expense deduction. Many heavy, non-SUV vehicles, like an NV Cargo Van, are automatically eligible for the full tax break, regardless of business usage rate.

All Section 179 fleet vehicles, whether new or used, must be purchased and placed in service before the end of the current tax year to be eligible for this write-off.