Definition

What is Section 179?

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year, instead of depreciating it a little at a time. That includes business vehicles over 6,000 lbs GVWR. It is an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.

Eligibility

Who is eligible?

All businesses that purchase, finance, or lease less than $6,650,000 in new or used business equipment during tax year 2026 should qualify. The vehicle must be placed in service between January 1, 2026 and December 31, 2026, used more than 50% for business, and titled to the business or to the owner who uses it for business. The deduction cannot exceed your business income for the year.

The 6,000 lb Rule

Why does GVWR over 6,000 lbs matter?

Passenger vehicles rated at 6,000 lbs GVWR or less fall under strict annual depreciation caps. Vehicles rated above 6,000 lbs are treated as business equipment, which opens the door to Section 179 and bonus depreciation. GVWR is the maximum loaded weight the manufacturer assigns to the vehicle, not the curb weight, and it is printed on the label inside the driver door jamb.

Limits

Is there a cap on SUVs and vans?

Yes, for passenger vehicles. The Section 179 deduction on SUVs and other passenger vehicles rated 6,001 to 14,000 lbs GVWR is capped at $32,000 for 2026. The remaining cost may still qualify for 100% bonus depreciation in the same year, so the combined first-year deduction can still equal the business-use portion of the price. Mercedes-Benz Sprinter cargo vans are generally not subject to the $32,000 cap because they are built to carry cargo, not passengers, with an enclosed cargo area and no seating behind the driver.

Bonus Depreciation

How does 100% bonus depreciation fit in?

H.R.1, signed in July 2025, permanently restored 100% first-year bonus depreciation under Section 168(k) for qualifying property acquired and placed in service after January 19, 2025. Bonus depreciation has no dollar cap and no SUV sub-limit. Many businesses apply Section 179 first, then bonus depreciation on the balance. Your tax professional decides the right order for your return.

Qualifying Models

Which Mercedes-Benz models exceed 6,000 lbs GVWR?

Mercedes-Benz USA lists these 2027 model year vehicles with a GVWR over 6,000 lbs. Most 2026 versions of the same lines also exceed 6,000 lbs. GVWR varies by trim and options, so confirm the figure on the driver door jamb label of the exact vehicle.

SUVs: GLE SUV and GLE Coupe (all), GLS (all), G-Class (all), EQE SUV (all), EQS SUV (all), GLC 350e 4MATIC®, GLC 400 4MATIC® with EQ Technology, GLB 250+ (7-seat) and GLB 350 4MATIC® with EQ Technology

Sedans and Wagons: S-Class (all), EQS Sedan (all), AMG® GT 4-Door Coupe (all), AMG® E 53 Hybrid Sedan and Wagon

Sprinter Vans: Sprinter 2500 and 3500 Cargo Van, 2500 Crew Van, 2500 Passenger Van, and eSprinter, with GVWR from approximately 9,050 to 12,125 lbs. Upfits purchased at the time of sale may also qualify.

Q1

Is a Mercedes-Benz Sprinter cargo van subject to the $32,000 SUV cap?

Generally, no. The cap applies to vehicles designed primarily to carry passengers. A Sprinter cargo van with an enclosed cargo area and no seating behind the driver is treated as a work vehicle, so the full business-use cost may be eligible for Section 179 up to the $2,560,000 annual limit. Crew and passenger configurations may be treated differently, so confirm with your tax professional.

Q2

Can I claim Section 179 on a leased Mercedes-Benz?

A true operating lease generally does not qualify because you do not own the vehicle, though the payments may be deductible as a business expense. A finance lease or purchase agreement that treats you as the owner may qualify. Ask your tax professional and our finance team before you sign.

Q3

Does a pre-owned or Certified Pre-Owned Mercedes-Benz qualify?

Yes. Section 179 and bonus depreciation both allow new or pre-owned vehicles as long as the vehicle is new to your business and was not acquired from a related party.

Q4

How do I prove business use above 50%?

Keep a mileage log or app that records date, destination, purpose, and miles. If business use drops to 50% or below in a later year, part of the deduction may have to be recaptured as income.