IRS Doubles Section 179 Deduction to $2.5 Million

The IRS revised the Section 179 tax deduction for 2025, doubling the expense limit to $2.5 million with a phase-out starting at $4 million. This change applies to new and used electric commercial vehicles, charging infrastructure, and battery energy storage systems, potentially accelerating fleet electrification despite the expiration of the Commercial Clean Vehicle Credit on September 30.