For the 2025 tax year, many luxury SUVs with a Gross Vehicle Weight Rating (GVWR) above 6,000 lbs, and used more than 50% for business, may qualify for a substantial Section 179 deduction.

To be eligible, your Cadillac must meet these general requirements:

• Business use: Must be used for business more than 50% of the time, with supporting records (such as mileage logs).
• Placed in service: Must be purchased or financed and placed in service between January 1 – December 31, 2025.
• Ownership: Can be new or new-to-you (used), but must be new to your business.
• Weight rating: Vehicle must meet specific GVWR thresholds; confirmation is available by VIN.

Heavy SUV Category (6,001 – 14,000 lbs GVWR)

May qualify for up to $31,300 in Section 179 expensing, plus bonus depreciation on any remaining cost:

• Escalade
• Escalade ESV
• Escalade IQ
• Escalade IQL
• LYRIQ (select trims ≈ 7,000 lb GVWR)
• XT5 (select trims)
• XT6

Coming Soon

• OPTIQ
• VISTIQ

As Cadillac expands its EV portfolio, new luxury SUVs may also meet Section 179 criteria depending on configuration and business use.

Passenger vehicles and smaller SUVs (such as CT4, CT5, and XT4) generally fall under standard luxury-auto depreciation limits and do not qualify for heavy-SUV expensing.

After taking your Section 179 deduction, vehicles placed in service in 2025 may also be eligible for 100% bonus depreciation on the remaining cost.

If placed into service between January 1 and January 19, 2025, bonus depreciation may apply at 40% under transitional rules.

Together, Section 179 and bonus depreciation can help you maximize your total tax advantage, while adding a Cadillac to your fleet.

Deduction Limitations

For the 2025 tax year:

• Section 179 deduction limit: $2,500,000
• Phase-out threshold: $4,000,000

Once total qualifying purchases exceed the threshold, deductions begin to phase out dollar-for-dollar. For more information please consult a Tax Advisor and IRS.gov.