Section 179 Tax Deductions on Sprinter Vans and Mercedes-Benz SUVs in Westminster, CO

Mercedes-Benz Sprinter van for Section 179 business use

Section 179 lets a business deduct some or all of the cost of a qualifying vehicle in the year it goes into service, instead of spreading that cost over several years. For Denver-area businesses shopping for a Sprinter van or a larger Mercedes-Benz SUV, that can lower the tax bill for the year you buy. Here's who qualifies, what this year's limits are, and which of our vans and SUVs fit.

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Who Qualifies for the Section 179 Deduction?

Section 179 applies when all of the following are true for the tax year you claim it:

Your business bought the vehicle, whether you paid cash or financed it.
It was placed in service during that tax year. For calendar-year businesses, that means by December 31.
It's used more than 50% for business. The deduction is based on the business-use share of the cost, so a vehicle used 80% for business counts at 80% of its price.

Weight matters too. Vehicles with a gross vehicle weight rating (GVWR) over 6,000 lbs aren't held to the much lower first-year depreciation limits that apply to passenger cars. That's why Sprinter vans and larger SUVs are the vehicles most businesses look at for Section 179.

Mercedes-Benz Sprinter Cargo Van used by a bakery as a Section 179 business vehicle

2026 Section 179 Limits

Limit	Amount
Maximum Section 179 deduction	$2,560,000
Phase-out begins when qualifying purchases exceed	$4,090,000
Section 179 cap for SUVs over 6,000 lbs and up to 14,000 lbs GVWR	$32,000
Bonus depreciation	100%

Each dollar of qualifying purchases above the phase-out threshold lowers the maximum deduction by one dollar. The deduction also can't be more than your business's taxable income for the year, though any unused amount carries forward to later years. These limits apply to tax years beginning in 2026 and are adjusted for inflation each year.

Mercedes-Benz Sprinter Cargo Van used by a painter as a Section 179 business vehicle

How Section 179 and Bonus Depreciation Work Together

Section 179 and bonus depreciation are separate deductions, and businesses often use both on the same vehicle. Section 179 is applied first. Bonus depreciation, now permanent at 100%, can then cover the rest of the vehicle's business-use cost.

Bonus depreciation isn't limited by business income, and the SUV cap applies only to the Section 179 portion. For example, a business that buys a qualifying SUV for 100% business use can deduct up to the SUV cap under Section 179 and apply bonus depreciation to the remaining cost. The more-than-50% business use rule applies to both.

Which Sprinter Vans Qualify for Section 179?

Every Sprinter Cargo, Crew, and Passenger Van is rated well over 6,000 lbs GVWR. How much of the cost Section 179 can cover depends on the van's layout, since some layouts aren't subject to the Section 179 SUV cap.

Sprinter Cargo Van

Generally eligible for the full limit

An enclosed cargo area with no seating behind the driver is one of the layouts excluded from the SUV cap. A cargo van can generally count toward the full Section 179 limit.

Sprinter Passenger Van

Not held to the SUV cap

The 12- and 15-passenger configurations seat more than nine people behind the driver, which also keeps them out from under the SUV cap.

Sprinter Crew Van

Limit depends on classification

With a second row of seats, the Crew Van doesn't clearly fit either exclusion, so ask your tax professional which limit applies. Bonus depreciation may still cover the remaining cost.

Upfits and modifications bought with the van at the time of sale may qualify as well. That's worth knowing if you're adding shelving, racks, or a partition.

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Mercedes-Benz Sprinter Cargo Van used by a construction business as a Section 179 business vehicle

Mercedes-Benz SUVs That May Qualify for Section 179

Mercedes-Benz SUVs rated over 6,000 lbs GVWR fall under the Section 179 SUV cap shown in the limits table, with bonus depreciation available for the remaining business-use cost. The model lines most often rated above that line are:

GLE, including Mercedes-AMG GLE models
GLS, including Mercedes-AMG GLS and Mercedes-Maybach GLS
G-Class, including the all-electric G 580 with EQ Technology
EQS SUV

GVWR can change with model and equipment, so confirm it on the label inside the driver's door jamb of the exact vehicle you're buying. Our sales team can check it for you on any SUV you're considering.

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Section 179 FAQs

Does a used Sprinter or SUV qualify for Section 179?

Yes. A used vehicle can qualify as long as it's new to your business and you bought it, rather than receiving it as a gift or inheritance. It also can't be bought from a related person such as a spouse, parent, or child. The same business-use and placed-in-service rules apply. You can browse our pre-owned inventory and Certified Pre-Owned inventory to see what's available now.

Can I take Section 179 on a leased vehicle?

Generally, no. Section 179 applies to vehicles your business buys, including vehicles bought with financing. A standard lease isn't a purchase, though some agreements are treated as purchases for tax purposes, and your tax professional can tell you how a specific contract is treated. Our finance team can walk you through purchase and financing options.

Does the van have to be delivered by December 31, or just purchased?

It has to be delivered. Section 179 counts a vehicle in the tax year it's placed in service, meaning delivered and ready for business use, not the year the deal is signed. A van you buy in December that arrives in January moves the deduction to the following tax year. If you're ordering a specific configuration or upfit, reach out to us early so we can talk through timing.

What happens if my business use drops to 50% or less later?

If business use falls to 50% or less in a later year, part of the deduction may have to be added back to your income for that year. Keeping a mileage log from day one makes it easier to show how the vehicle is used. Your tax professional can explain how this would apply to your business.

How do I claim the Section 179 deduction?

The deduction is elected on Internal Revenue Service (IRS) Form 4562, Part I, filed with your business tax return. Your tax preparer will need the purchase price, the date the vehicle was placed in service, and its business-use percentage, so keep your bill of sale with your tax records.

Shop Section 179 Vehicles at Mercedes-Benz of Westminster

Our team can help you find a Sprinter or SUV that fits the work your business does. We can also confirm the GVWR and layout of a specific vehicle and plan delivery so it's in service before the end of the year. Your tax professional can then confirm how the deduction applies to your return.

This information is for general purposes only and isn't tax or legal advice. Section 179 and bonus depreciation eligibility depends on your business, how the vehicle is classified, and how it's used. State tax rules may not match federal rules. Dollar figures apply to the tax year shown in the limits table. Please consult a tax professional before making a purchase decision based on tax benefits.

IRS Resources

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