Commercial Vehicle Tax Credit for Michigan Drivers

Ram Truck and Van Tax Credits

There are two main tax credits to know for your commercial trucks and vans. They include:

• Section 168(k): Ram trucks generally can qualify for Section 168(k) if they've invested in new vehicles for their fleet along with other equipment. You can potentially deduct the maximum of the purchase cost for vehicles rated over 6,000 pounds in Gross Vehicle Weight Rating (GVWR) if you use it 100 percent for business use only, allowing you to deduct much of the cost in the first year.
• Section 179: With Section 179, if you purchase a new work truck, or "new to you" option, which includes select pre-owned choices for business use, there's a potential to write off the purchase if you're using it for business more than 50 percent of the time, only deducting the time you use it for work. Each vehicle has to meet weight standards of 6,000 to 14,000 pounds and you're not able to write off the purchase and claim the standard mileage deduction in the same year, nor can you deduct more than your business's net income for the year.