Year-End Tax Breaks for Qualifying Heavy-Duty Trucks – Including the Volvo VNL

As 2025 wraps up, smart fleet owners across Indiana are getting ahead of tax season with Section 179.

If you’re looking to purchase a Volvo VNL from McMahon Truck Centers of Indianapolis, this deduction could help you write off a significant portion of your truck’s cost this year – instead of spreading it out over future tax cycles.

That means stronger cash flow, greater flexibility, and the chance to close out the year with a smart financial move for your operation.

Section 179: How It Works

Section 179 lets eligible businesses deduct the full cost of qualifying equipment in the same year it’s placed in service, rather than depreciating the asset over time.

Most heavy-duty commercial trucks qualify as long as they’re used more than 50% for business and meet IRS guidelines.

For Indiana fleets hauling regional or vocational routes, that can translate to substantial year-end tax relief.

Key Details for Indianapolis Fleets

Placed-in-Service Requirement

To claim Section 179 for 2025, your new Volvo VNL must be purchased, delivered, and ready for business use by December 31.

Simply having the truck on order isn’t enough. Finalize your build, delivery, and titling schedule early so you can meet the deadline and secure your deduction.

Deduction Limits and Phase-Out Threshold

For 2025, Section 179 allows:

• Maximum deduction: $1.25 million
• Phase-out begins: $3.13 million in total qualifying purchases

If you’re expanding your Indianapolis-based fleet or taking delivery on multiple Volvo trucks, plan your timing carefully to stay below the phase-out and make the most of available savings.

Business-Use Documentation

Each qualifying vehicle must maintain more than 50% business use, supported by consistent mileage or usage logs.

If business use later falls below 50%, you may need to “recapture” part of the deduction on your taxes – so accurate records are key.

Bonus Depreciation Opportunities

In addition to Section 179, bonus depreciation can provide extra savings on eligible property.

• Property placed in service January 1–19, 2025: 40% bonus depreciation applies
• Property acquired and placed in service after January 19, 2025: 100% bonus depreciation applies under the 2025 law change

Year-End Planning Checklist for Indianapolis

• Confirm Section 179 eligibility and deduction limits for your total 2025 equipment purchases
• Schedule delivery to ensure the truck is placed in service by December 31
• Maintain documentation proving more than 50% business use
• Evaluate how bonus depreciation can enhance your Section 179 benefits

Secure Your Section 179 Savings Before Year-End

From the highway-ready Volvo VNL to other qualifying Volvo models, your next truck could qualify for significant year-end tax savings under Section 179.

McMahon Truck Centers of Indianapolis is here to help you align your purchase and delivery schedule so you can take advantage of every available deduction.

Call 317.244.6811 to reach our Indianapolis team or browse current inventory to find the truck that fits your fleet’s needs.