Every December, fleet managers leave thousands of dollars on the table.

The Overlooked Fleet Deductions

Section 179: The "Use It Now" Deduction

Under IRS Section 179, you can deduct up to $1,220,000 in qualifying equipment purchases for 2025, with a total phase-out limit of $3,130,000.

• Includes vehicles under 6,000 lbs GVWR
  
• SUVs between 6,000–14,000 lbs GVWR have a deduction limit of $31,300
• Equipment must be purchased and placed in service by December 31, 2025
• GPS systems, ELDs, and fleet tech qualify as fully deductible if installed before year-end
  

Bonus Depreciation: 100% This Year 🎉

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, restored 100% bonus depreciation for eligible assets placed in service between January 20 and December 31, 2025.
💡Example:

• Buy a $50,000 vehicle before January 20, 2025 → Deduct $20,000 this year (40%)

• Buy the same vehicle after January 20, 2025 → Deduct $50,000 this year (100%)

Software & Technology (100% Deductible)

Per IRS Publication 535, business software and cloud-based tools are deductible in the year you pay for them. This includes:

• Fleet management or routing platforms (like Darter)

• ELD devices and compliance tools

• Route optimization or dispatch software

• Mobile apps and tablets for drivers

Repairs vs. Improvements

According to IRS Publication 946:

• Routine maintenance such as oil changes or tire rotations is fully deductible in the year incurred.

• Larger upgrades like engine rebuilds or major replacements must be depreciated instead.

💡 Pro tip: Schedule maintenance before year-end to capture 2025 deductions.

Home Office for Dispatch

If you manage dispatch remotely, you may qualify for the home office deduction.

• $5 per sq ft (up to 300 sq ft) using the simplified method

• Or deduct a portion of actual home expenses if you keep records

Why It Matters for Fleets

With bonus depreciation dropping next year, 2025 offers the strongest opportunity to write off vehicles, software, and operational equipment.

If you’re already using Darter, your subscription counts as a deductible operating expense under current IRS business rules — another way to keep more of your earnings while improving your operations.

Use the deductions you’ve earned — before they disappear.