Ford Tax Incentives
FORD COMMERCIAL FLEET VEHICLE TAX INCENTIVES
Small business owners in the Belle Vernon and Greensburg, PA, areas—did you know that you can qualify for Ford Commercial fleet vehicle tax incentives? They’re part of the 2017 IRS Tax Cuts and Jobs Act that incentivizes small businesses to invest in new equipment, including qualifying vehicles.1
If you want to find out how to make these tax incentives work for you and your business in the Mt. Pleasant and Youngwood areas, reach out to the finance center team at C. Harper Ford!1
HOW COMMERCIAL VEHICLE TAX INCENTIVES WORK
The tax incentives for Ford commercial fleet vehicles are simple:
- Purchase a qualifying vehicle before the end of the year and put it into service
- Use the vehicle for at least 50% business, based on mileage, in its first year in service
- Write off up to the entire purchase cost on your tax returns
It’s important to keep in mind that to qualify, the vehicle must be purchased before the end of the year and 50% of its use must be for business purposes. That means, you’re welcome to use your truck every now and then to help someone move or to do some heavy-duty recreational towing, but the vehicle must be working at least half the time it’s in service for the first year.
If you have any additional questions about the tax incentives and how your purchase may qualify, reach out to our team.1
WHAT COMMERCIAL VEHICLES QUALIFY FOR TAX INCENTIVES?
If you’re looking to add a couple vehicles to your fleet, how you qualify for tax incentives will vary based on the type of vehicle, as you’ll see here:
Ford Transit: Potentially deduct up to the entire purchase cost of one or more vehicles on your IRS tax return.
Ford Transit Connect: Potentially deduct up to $18,100 in the first year, then deduct the remainder over the next several years under normal depreciation method.2
Ford Super Duty Vehicles: Potentially deduct up to the entire purchase cost of one or more vehicles on your IRS tax return. Super Duty models include trucks like the Ford F-250, F-350, and F-450.
Ford Medium Duty Vehicles: Potentially deduct up to the entire purchase cost of one or more vehicles on your IRS tax return. Medium duty vehicles include models like the Ford F-650 and F-750 chassis cabs.
Note that these tax incentives only apply to trucks, vans, and SUVs with a gross vehicle weight rating (GVWR) above 6,000 pounds.
OTHER FORD COMMERCIAL INCENTIVES
In addition to tax incentives, Ford offers many other commercial incentives that change year by year. If you’re a small business owner who is looking to add trucks or vans to your fleet, we always recommend chatting with the finance center at your local dealership about any incentives currently offered by Ford, as well as any tax breaks you may be eligible for.1
We’ll gladly talk with you about all the ways you can get financial assistance as a small business owner. After all, small businesses like yours are the community’s backbone, and we want to make sure that you have the tools and resources you need to get the job done.
Contact us with any questions!
TEST DRIVE A COMMERCIAL FORD FLEET VEHICLE TODAY
Now that you know about the Ford commercial fleet vehicle tax incentives you may qualify for, it’s time to find the trucks and cargo vans that you want to add to your business in the Mt. Pleasant, Youngwood, and Belle Vernon, PA, areas.
Fleet and business owners near Greensburg, PA, can contact C. Harper Ford to take a test drive today!
1 The information supplied here is provided by your local Ford Dealer as a public service to its customers. It should not be construed as tax advice or as a promise of potential tax savings or reduced tax liability. Individual tax situations may vary. Federal rules and tax guidelines are subject to change. For more information about the Section 168 (K) expense write-off or other business vehicle expense write-offs, you should consult your tax professional for complete rules applicate to your transaction and visit the Internal Revenue Website at www.irs.gov.
2 Under Bonus Depreciation in Section 168 (K) of the Internal Revenue Code, companies may be eligible to fully expense the cost of trucks, vans and SUVs rated over 6,000-lbs. GVWR, when purchased for business use. Trucks and vans that are considered passenger vehicles, rated under 6,000-lbs. GVWR, are limited to $18,100 of depreciation in the year of purchase with normal MACRS depreciation on the remaining basis in the vehicle in subsequent years. A vehicle is not considered a passenger vehicle and is thus not limited to the lower depreciation amounts, if it is considered a "qualified non-personal use vehicle." Qualified non-personal use vehicles are vehicles that, by virtue of their nature or design, are not likely to be used more than a de minimus amount for personal purposes. Examples of qualified non-personal use vehicles include 1) a vehicle that can seat nine-plus passengers behind the driver's seat, 2) a heavy non-SUV vehicle with a cargo area of at least six feet in interior length or 3) a vehicle with a fully-enclosed driver's compartment/cargo area, no seating behind the driver's seat and no body section protruding more than 30 inches ahead of the leading edge of the windshield. For more information, see IRC Section 280 (d)(7), Income Tax Reg., Sec 1.280F-6(c)(3)(iii), Income Tax Reg. Sec 1.274-5T(k), and Revenue Ruling 86-97, and contact your tax advisor for details. Consult your tax advisor as to the proper tax treatment of all business-vehicle purchases.