Buying a Semi-Trailer in 2025? Here’s How Section 179 and Bonus Depreciation Helps

When it comes to purchasing a new or used semi-trailer for your business, timing matters—not just for your operations but for your bottom line. Thanks to Section 179 and Bonus Depreciation, 2025 offers major tax advantages for businesses investing in equipment like semi-trailers. If you’re considering expanding your fleet, here’s how these tax provisions can help you save. 

What Is Section 179? 

Section 179 of the Internal Revenue Code allows businesses to deduct the full purchase price of qualifying equipment purchased and placed into service during the tax year. Instead of spreading depreciation out over several years, businesses can take the deduction immediately. 

For 2025, the limits are generous: 

• Deduction limit: Up to $2,500,000 
• Phase-out threshold: Begins at $4,000,000 

This means that if you buy a semi-trailer from Great Western Trailer and put it into service before year-end, you could potentially deduct the full cost in that same year. 

What About Bonus Depreciation? 

Bonus depreciation is an additional first-year depreciation benefit that businesses can use after applying Section 179. For 2025, bonus depreciation is set at 100%, and here’s the best part: it applies to both new and used equipment (as long as it’s new to your business). 

That makes used semi-trailers from Great Western Trailer just as attractive from a tax perspective as new ones. 

How Buyers of Semi-Trailers Benefit 

1. Immediate Tax Savings
   Deducting the full purchase price upfront reduces taxable income and lowers tax bills in the year of purchase. 
2. Improved Cash Flow
   Keeping more money in your business means more capital for operations, fuel, driver pay, or maintenance. 
3. Fleet Expansion Incentives
   Whether you’re adding one trailer or several, the current limits mean many fleet purchases can still qualify for the full deduction. 
4. Used Trailers Qualify
   Since bonus depreciation covers used equipment, you don’t have to buy new to maximize deductions. 
5. Buy Before Year-End
   To qualify for 2025, the trailer must be placed into service before December 31. 

Things to Keep in Mind 

• The trailer must be used more than 50% for business purposes. 
• You’ll need proper documentation showing the purchase and when the trailer was placed into service. 
• Section 179 deductions start phasing out once your total equipment purchases exceed $4 million in the year. 
• State tax laws may differ from federal rules—always confirm with your tax advisor.
   

If you’re considering a semi-trailer purchase, don’t overlook the impact of Section 179 and Bonus Depreciation. These provisions can significantly reduce your tax burden while strengthening your fleet. Be sure to talk with your tax professional about how these rules apply to your specific business situation. 

For more questions on the type of trailer that’s right for your business, contact one of our expert semi-trailer representatives at Great Western Trailer—we’re here to help.