If you’re a business owner considering an eco-friendly upgrade, you’ve probably asked: What electric vehicles qualify for Section 179? This powerful tax deduction is commonly associated with heavy equipment and commercial trucks, but did you know it can also apply to electric vehicles (EVs)?
Under Section 179 of the IRS tax code, qualifying businesses can deduct the full or partial cost of eligible vehicles and equipment used for business purposes immediately, rather than depreciating it over several years. In recent years, the list of electric vehicles that qualify for Section 179 has grown, thanks to expanded IRS rules and an increase in demand for green energy solutions.
With the rise of electric vans, trucks, and SUVs designed for commercial use, businesses now have more options than ever to lower taxable income while reducing their carbon footprint. However, the criteria are specific. Weight classifications, business use percentage, and the purchase method all play crucial roles.
This guide breaks down everything you need to know about electric vehicles that qualify for Section 179—from what the deduction covers to which models are eligible, how to claim it, and the advantages for small businesses and fleet owners.
What Is Section 179, and Why Does It Matter for EV Owners?
Section 179 of the IRS tax code is a valuable tool for businesses, allowing them to deduct the full purchase price of qualifying equipment—including certain electric vehicles—used primarily for business operations. While this deduction was historically aimed at heavy machinery and gas-powered work trucks, recent updates have made it more inclusive of electric vehicles (EVs), especially those designed for commercial or utility use.
To take advantage of Section 179, an electric vehicle must be purchased (not leased), placed into service during the current tax year, and used for business more than 50% of the time. A key qualification factor is the vehicle’s Gross Vehicle Weight Rating (GVWR). EVs with a GVWR exceeding 6,000 pounds—such as heavy-duty trucks, vans, and SUVs—are more likely to qualify under the current IRS rules.
For 2025, the deduction limit is expected to be around $1,220,000, and additional bonus depreciation of up to 80% may apply depending on the vehicle type and usage. This creates significant savings for businesses purchasing electric vehicles that qualify for Section 179. Models like the Ford E-Transit, Rivian R1T, and Tesla Cybertruck can offer not just sustainability but also financial benefits for small business owners and fleet managers.
Which Types of Electric Vehicles Qualify for Section 179?
Not all electric vehicles automatically qualify for the Section 179 deduction. To meet the IRS criteria, several specific requirements must be fulfilled. Here’s a breakdown of the key factors that determine eligibility:
Gross Vehicle Weight Matters
Electric vehicles with a Gross Vehicle Weight Rating (GVWR) over 6,000 pounds are typically eligible under Section 179. This includes many electric SUVs, vans, and trucks designed for commercial use. Heavier vehicles are treated more favorably for tax deduction purposes due to their utility in business operations.
Business Use Percentage
The EV must be used for business at least 50% of the time to qualify. Daily commuting to and from a regular job doesn’t count. Instead, think of business trips for client meetings, mobile service visits, delivery routes, or transporting tools and equipment.
Purchase vs. Lease
Only purchased vehicles are eligible for the Section 179 deduction. Leased electric vehicles do not qualify for this specific tax benefit, though leasing may offer other tax write-offs or deductions depending on the agreement and usage.
Placed in Service Within the Tax Year
The EV must be placed in service during the tax year you’re claiming the deduction. For example, if you purchase the vehicle in December 2025 but don’t start using it until January 2026, it won’t qualify for a 2025 deduction.
Top Electric Vehicles That Qualify for Section 179 in 2025
If you’re planning to invest in electric vehicles that qualify for Section 179, it’s essential to choose models that meet IRS requirements—especially those with a Gross Vehicle Weight Rating (GVWR) over 6,000 lbs and used for business purposes. Below are some of the most promising EVs for 2025 that may qualify:
- Tesla Model X: A luxury SUV with a GVWR exceeding 6,000 lbs, the Tesla Model X is a top choice for professionals who want performance, technology, and business-class appeal.
- Ford F-150 Lightning: This all-electric version of America’s best-selling truck is built for utility and business operations. With impressive towing capacity and worksite features, it meets both performance and Section 179 requirements.
- Rivian R1T & R1S: These rugged electric vehicles offer powerful off-road capabilities and extended range—ideal for contractors, field workers, or outdoor service businesses.
- Ford E-Transit Van: Designed specifically for fleet use, this electric cargo van is optimized for delivery services, logistics, and mobile businesses.
- Chevy Silverado EV: The 2025 Silverado EV is expected to meet the required GVWR and is perfect for heavy-duty business needs in construction or hauling.
- GMC Hummer EV: With robust design and commercial-grade strength, the Hummer EV is a high-performance option for qualifying business uses.
- Bollinger B2: A durable, boxy EV pickup designed for commercial tasks. Its high GVWR and business-ready features make it a strong candidate for deductions.
How to Claim Section 179 for Electric Vehicles
Claiming the Section 179 deduction for electric vehicles can seem complex at first, but breaking it down into clear steps makes the process manageable. Here’s how to ensure you take full advantage of the tax savings available with electric vehicles that qualify for Section 179:
- Determine Eligibility: Before anything else, confirm that your electric vehicle meets the IRS criteria. It must have a Gross Vehicle Weight Rating (GVWR) over 6,000 lbs and be used for business purposes more than 50% of the time. Leased vehicles do not qualify.
- Calculate Business Use Percentage: Only the business-use portion of the vehicle qualifies for the deduction. For example, if the vehicle is used 80% for business and 20% for personal use, only 80% of the cost can be deducted under Section 179.
- Complete IRS Form 4562: To officially elect the deduction, fill out and submit IRS Form 4562 with your annual tax return. This form documents the amount of the deduction and the nature of the qualifying property.
- Track Vehicle Usage: Maintain accurate records of mileage, business-related trips, and maintenance. This documentation is crucial if your deduction is ever reviewed or audited by the IRS.
- Consult a Tax Professional: Section 179 filings can be nuanced, especially when combined with bonus depreciation or other deductions. A CPA or tax advisor familiar with EV-related write-offs can ensure full compliance and maximize your tax benefit.
Why Small Businesses Should Consider Section 179 EV Benefits
For small businesses looking to cut operating costs and improve their sustainability profile, electric vehicles that qualify for Section 179 offer a unique and timely advantage. One of the most compelling benefits is the ability to deduct a large portion—or even the full purchase price—of qualifying electric vehicles used for business. This immediate tax write-off can significantly reduce taxable income, making it easier for businesses to invest in cleaner, more efficient transportation.
Service-oriented businesses such as HVAC companies, electricians, mobile repair services, and delivery startups often rely on dependable vehicles to perform daily operations. By upgrading to electric vehicles that meet Section 179 criteria, these businesses can not only save on long-term fuel and maintenance costs but also claim powerful tax savings upfront.
Fleet managers and entrepreneurs who purchase multiple EVs in the same tax year can maximize their deductions across multiple vehicles, further increasing the return on investment. With lower emissions, reduced fuel dependency, and strong tax incentives, electric vehicles represent not just a green initiative but a financially strategic business move under Section 179.
In Closing
If you’re looking to cut taxes, modernize your business fleet, and support green energy, now is the time to consider electric vehicles that qualify for Section 179. These EVs offer the opportunity to deduct significant costs up front, making them more affordable and attractive to business owners.
Whether you’re a solopreneur or managing a growing team, leveraging this deduction can improve your bottom line and demonstrate environmental responsibility. With proper planning, the transition to electric mobility can be both financially and ethically rewarding.
FAQ’s
Q. Do all electric vehicles qualify for Section 179?
A. No. Only electric vehicles over 6,000 lbs GVWR used for business purposes more than 50% of the time are eligible.
Q. Can leased EVs be deducted under Section 179?
A. No, leased EVs don’t qualify for the Section 179 deduction, though lease payments might be deductible separately.
Q. How do I prove business usage for my EV?
A. Keep a detailed mileage log, business use reports, and service receipts to validate IRS requirements.
Q. What form do I use to claim Section 179 for an EV?
A. Use IRS Form 4562 to claim the deduction on your business tax return.
Q. Are there EV-specific incentives besides Section 179?
A. Yes! You may also qualify for the federal EV tax credit, state rebates, and bonus depreciation on top of Section 179.
