Commercial vehicle sales are expected to see a boom as the year comes to an end, thanks to an expiring tax deduction.
Section 179 of the U.S. Internal Revenue Code allows businesses to deduct up to 76 percent of the cost of their commercial vehicle this year, nearly double what was previously allowed. The deduction expires today, which will likely cause an increase in commercial vehicle sales the last week of December.
Section 179 was originally established before the recession to help boost the economy with businesses allowed to deduct up to $25,000 a year in annual depreciation on vehicles such as a heavy-duty pickup. But as part of the tax-code changes, the annual limit was increased to $500,000. That limit will revert back to $25,000 next year. Businesses that purchase or lease $2 million or less in equipment this year can apply for the Section 179 deduction.
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[Source: Dallas News]
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