Expiring tax deduction could boost truck sales

A provision in the federal tax code in the United States that allows business owners to deduct $500,000 worth of assets like heavy duty trucks expires at the end of this year, meaning sales of some vehicles could skyrocket at the end of 2013.

Section 179 of the federal tax code was expanded from a $25,000 per year deduction to half a million dollars as part of a bid to boost the ailing economy a few years ago. That jump sunsets when the calendar switches to 2014 next week.

A $60,000 heavy duty truck bought before January 1 could be claimed as a $46,000 depreciation deducted directly from a business’ taxes, meaning big savings on April 15.

The Dallas Morning News cites several local businesses that amped up their commercial truck buying in December to take advantage of the expiring exemption. The paper says that commercial divisions of the handful of car dealerships involved in selling directly to other businesses have been “especially frantic” this month.

But not only are dealers and businesses looking to cash in on the expiring deduction. Chrysler’s Ram division commercial sales chief says he pushed the automaker to get its new ProMaster full-size commercial van into dealers prior to the end of the year.

“Several months ago, we did everything we could to pull ahead the production of the ProMaster,” Chrysler’s Mike Ring said. “We knew we couldn’t launch in January because the season would already be over.”

During the first week of 2014, automakers will report their 2013 overall sales figures. A big jump in sales of certain commercial vehicles – including big pickups – is expected.

Photo by Nat Shirley.<![CDATA[
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