Do any Volvos qualify for Section 179? Is Volvo C40 Hybrid or electric?

Do any Volvos qualify for Section 179? Is Volvo C40 Hybrid or electric?

If you are a business owner looking for a tax deduction on your vehicle purchase, you might be wondering if any Volvos qualify for Section 179. Section 179 is a provision of the IRS tax code that allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. This means that if you buy or lease a piece of qualifying equipment, you can deduct the full purchase price from your gross income.

One of the criteria for qualifying for Section 179 is that the vehicle must be used for business purposes more than 50% of the time. Another criterion is that the vehicle must meet certain weight and size requirements. According to the IRS, the following types of vehicles qualify for Section 179:

- Heavy SUVs, trucks, and vans that have a manufacturer's gross vehicle weight rating (GVWR) above 6,000 pounds

- Vehicles that can seat nine or more passengers behind the driver's seat (such as hotel or airport shuttle vans)

- Vehicles that have a fully enclosed cargo area with no seating behind the driver's seat and no body section protruding more than 30 inches ahead of the leading edge of the windshield (such as cargo vans or delivery trucks)

Based on these criteria, some Volvos may qualify for Section 179, depending on their GVWR and configuration. For example, the Volvo XC90 SUV has a GVWR of 6,165 pounds and can seat up to seven passengers, which means it may qualify for Section 179 if it is used for business purposes more than 50% of the time. However, the Volvo C40 crossover coupe has a GVWR of 5,302 pounds and can seat only five passengers, which means it does not qualify for Section 179.

The Volvo C40 is also an interesting case because it is a hybrid electric vehicle (HEV), which means it has both a gasoline engine and an electric motor. HEVs are different from pure electric vehicles (EVs), which run solely on battery power and do not have a gasoline engine. EVs are eligible for a different tax incentive called the federal electric vehicle tax credit, which can reduce your tax liability by up to $7,500 depending on the battery capacity and your tax situation.

The federal electric vehicle tax credit applies to new EVs purchased after December 31, 2009 and before January 1, 2022. The credit begins to phase out once a manufacturer sells more than 200,000 eligible vehicles in the United States. As of June 2021, Volvo has not reached this threshold yet, which means its EVs are still eligible for the full credit. However, this may change in the future as Volvo plans to sell more EVs in the coming years.

One of Volvo's EVs is the C40 Recharge, which is an all-electric version of the C40 crossover coupe. The C40 Recharge has a battery capacity of 78 kWh and an estimated range of 210 miles on a single charge. It also has a fast-charging capability that can replenish up to 80% of the battery in about 40 minutes. The C40 Recharge is expected to be available in the US market in early 2022.

To summarize, some Volvos may qualify for Section 179 if they meet certain weight and size requirements and are used for business purposes more than 50% of the time. The Volvo C40 does not qualify for Section 179 because it is too light and small. However, it is available as a hybrid electric vehicle (HEV) or an all-electric vehicle (EV). HEVs do not qualify for any federal tax incentives, but EVs do qualify for the federal electric vehicle tax credit, which can reduce your tax liability by up to $7,500. The Volvo C40 Recharge is an EV that will be available in early 2022.----------------------------------------