If you're a business owner looking to maximize your savings on a new Land Rover, consider the potential benefits made available by Sections 179 and 168(k) of the IRS tax code. Choosing a new vehicle like the Range Rover, Range Rover Sport, Range Rover Evoque, Range Rover Velar, Defender 90, Defender 110, Defender 130, or Discovery instead of a luxury sedan can be a smart decision that provides plenty of advantages not only for you but for your business as well. There have been a number of updates for the new tax year which we'll explain in greater detail below.
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Section 179 of the IRS tax code allows businesses to deduct the price of qualifying equipment, such as vehicles, purchased or financed during the tax year. The Internal Revenue Service breaks down the list of vehicles that qualify for Section 179 deduction into three primary groups: Light, Heavy, and Other.
Several Land Rover SUVs meet the requirements of the "Heavy" category - which is defined as vehicles with a GVWR (gross vehicle weight rating) over 6,000 pounds, but not more than 14,000 pounds. These models include Range Rover, Range Rover Sport, Range Rover Evoque, Range Rover Velar, Defender 90, Defender 110, Defender 130, and Discovery (certain trim levels, GVWR may vary).
For the 2025 tax year, Section 179 allows for a maximum depreciation of $31,300 for "Heavy" vehicles in the current tax year, provided the vehicle is bought and put into service before January 1, 2026, and also meets certain other conditions below:
- The vehicle can be either new or used; however, it must be purchased in an "arm's-length" transaction that has been financed with qualified loans and leases and the title of the vehicle must be in the company's name and not in the name of the company owner.
- At least 50% of the time, the vehicle should be used for business purposes and if the vehicle is not used completely for business purposes, 100% of the time, then there is a reduction of depreciation limits by the corresponding percentage of personal usage.
- You can claim the Section 179 deduction only in the tax year in which the vehicle has been put into service i.e. when the vehicle is ready and available, although you are not using the vehicle.
- Also, a vehicle that has been used for personal purposes first does not qualify for the Section 179 deduction if its purpose is changed to business use in a later year.
- Note: Individual tax situations may vary. Please consult your tax advisor for complete details on rules applicable to your business.
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Additionally, Section 168(k) allows for additional "Bonus Depreciation" amounting to 60% of the purchase price of a select Range Rover, Range Rover Sport, Range Rover Evoque, Range Rover Velar, Defender 90, Defender 110, Defender 130, or Discovery through the end of 2025. When added to the $31,300 from Section 179, this can deliver a dramatic first-year depreciation tax deduction for certain luxury SUVs purchased in 2025.
Depreciation Example | "Heavy" Section 179 | "Light" Section 179 |
|---|---|---|
| 2025 IRS Section 179 Maximum 1st Year Depreciation Depreciation | $31,300 | $12,400 |
| Section 168(k) Bonus Depreciation | 60% of Purchase Price | Capped at $8,000 for Luxury Vehicles |
| Qualifying Vehicles | New & Used | New & Used |
Example Vehicle | Range Rover Sport | Competitor Luxury Sedan |
| Purchase Price | $90,525 | $90,525 |
| First Year Section 179 Maximum Depreciation | $31,300 | $12,400 |
| First Year Section 168(k) Bonus Depreciation | $54,315 | Capped at $8,000 |
| Total 1st Year Depreciation | $84,815 | $20,400 |
Additional 1st Year Depreciation for "Heavy" Section 179 | $64,415 | - |
* Individual tax situations may vary. Information accurate at time of publication. Federal rules and tax guidelines are subject to change. Consult your tax adviser for complete details on rules applicable to your business.
** The Range Rover, Range Rover Sport, Land Rover Discovery and Land Rover Defender 110 have gross vehicle weight ratings (GVWR) greater than 6,000 pounds and are classified as heavy SUVs. As such, these vehicles can be fully depreciated in the first year of ownership when used for business 100% of the time, GVWR is the manufacturer's rating of the vehicle's maximum weight when fully loaded with people in the cargo. See Land Rover Lakeland for details.