Section 179 Tax Deductions at Mercedes-Benz of McKinney
Your business could deduct up to $31,300 * in Section 179 deductions for 2025. **
What is a Section 179 Tax Deduction, and How Can McKinney Businesses Benefit?
Section 179 is a federal tax deduction that allows qualifying businesses to write off the full purchase price of eligible vehicles during the tax year they are placed into service. For business owners in McKinney, TX, and the surrounding North Texas area, this can represent a significant benefit on select Mercedes-Benz models used for work operations.
Instead of spreading deductions over several years, Section 179 lets you deduct the whole amount up front. This can lower your taxable income for the year and support cash flow improvement for your company. For many McKinney entrepreneurs, contractors, and small business owners, this incentive can significantly improve the cost of upgrading to a luxury Mercedes-Benz vehicle, which is built for daily business use.
Does My Business Qualify?
You may qualify if you:
- Are a business that purchased or financed qualifying new or used business equipment, including certain business-use vehicles, during the tax year.
- Used this equipment for business purposes more than 50% of the time.
- Spent less than $3,130,000 on this equipment.
What Are The Dollar Amount Limits?
These are the limits on claiming this tax savings:
- You cannot write off more than $1,250,000.
- The total amount of the equipment purchase cannot be more than $3,130,000. It phases out dollar-for-dollar after that, so once $4,050,000 is spent, the deduction goes away entirely.
| Model | Type | Section 179 Deduction Potential | Notes |
|---|---|---|---|
| GLE SUV (GLE 350, GLE 450, GLE 450e, GLE 580, AMG® GLE 53, AMG® GLE 63 S) | Heavy SUV | May qualify for Heavy SUV deduction cap — ~$31,300 | Weight varies by trim; verify GVWR before claiming. |
| GLS SUV (GLS 450, GLS 580, AMG GLS® 63, Maybach GLS) | Heavy SUV | Eligible under Heavy SUV rules — up to approximately $31,300 | Requires GVWR > 6,000 lbs and at least 50% business use. |
| G-Class (G 550, G 580e, AMG® G 63) | Heavy SUV | Eligible under Heavy SUV rules — ~$31,300 | High curb weight typically meets GVWR threshold. |
| Sprinter (Cargo / Passenger / Crew) | Commercial Van / Heavy Vehicle | Often eligible for the full Section 179 deduction (subject to overall limit) when used primarily for business | Strong candidate for full deduction; confirm GVWR and business use percentage. |
| EQE SUV & EQS SUV | Heavy Electric SUV | Eligible under Heavy SUV rules if GVWR > 6,000 lbs — ~$31,300 | Battery weight varies by trim; confirm specific model GVWR. |
* $31,300 tax deduction for qualifying vehicles based on current Section 179 of U.S. tax code and maximum deduction permitted for such vehicles under Section 179. Vehicles must be purchased for business use. Please consult your tax advisor. This information does not constitute, nor is it intended to be, legal, tax, financial planning or investment advice and should not be relied upon as such.
** Tax savings based on 21% federal corporate tax rate and eligibility to claim full $31,300 IRS Section 179 tax deduction for qualified vehicles. Your tax rate and eligibility may vary. Please consult a tax professional for more information on your federal tax rate and potential tax savings available to you for qualifying purchases. This information does not constitute, nor is it intended to be, legal, tax, financial planning or investment advice and should not be relied upon as much. For more details, visit www.mbvans.com/en/section-179-tax-deductions and www.irs.gov.