With 100% bonus depreciation and expanded Section 179 benefits, there’s never been a better time to upgrade your fleet. Save on taxes, improve cash flow, and modernize your fleet before December 31st.
2025 brings powerful new tax opportunities for truck owners and fleet operators.
100% bonus depreciation has been permanently restored, and Section 179 deduction limits have dramatically expanded — letting you deduct the full purchase price of qualifying trucks in the same year they’re placed in service.
These changes deliver immediate cash-flow benefits, greater financing flexibility, and long-term savings for businesses investing in their fleet.
Under recent federal tax law, major updates now benefit equipment buyers:
100% Bonus Depreciation Restored (Permanent): Applies to both new and used trucks placed in service after January 19, 2025
Section 179 Deduction Expanded: Deduct up to $2.5 million annually, with a new phase-out threshold of $4 million
Inflation Protection: Both limits adjust automatically each year to preserve long-term value
Enhanced Interest Deductibility: Businesses may now deduct up to 30% of EBITDA, improving financing affordability
Together, these provisions allow you to write off your truck’s cost, reduce taxable income, and reinvest that capital back into your business — all in one tax year.
100% Bonus Depreciation
Deduct the entire cost of a qualifying truck in the year it’s placed in service
Applies to both new and used trucks
No phase-down schedule — permanent going forward
Section 179 Expensing
2025 maximum deduction: $2.5 million
Phase-out threshold: $4 million (benefit begins to reduce beyond this amount)
Example savings: Up to $525K–$925K in tax relief depending on business type and tax rate
These expanded incentives directly benefit:
Owner-operators upgrading equipment or adding capacity
Small and mid-size fleets replacing aging trucks
Vocational and regional operations investing in specialized chassis or dump applications
Businesses financing equipment that rely on strong year-end cash flow
Qualifying purchases include most Kenworth trucks as well as, trailers, and mounted vocational equipment used predominantly for business purposes.
To take advantage of 2025 deductions, your equipment must be purchased and placed in service by December 31, 2025. Inventory moves quickly during fourth quarter — now is the best time to plan with your accountant and secure your new truck.