Bonus Depreciation vs. Section 179 for a Work Truck (Ram 3500 Rebel) — 2025, With California Rules

If you're buying a Ram 3500 Rebel for your business in 2025, here's how the write-offs actually work. We'll cover federal bonus depreciation, Section 179, when the deduction kicks in, the SUV/pickup rules, and how California treats it differently.

The Short Answer

Federal: For 2025, new law restored 100% bonus depreciation for most "qualified property," which includes heavy work trucks like a Ram 3500. That means you can usually expense the full cost in year 1 if the truck is placed in service in 2025 and used more than 50% for business. The law permanently sets bonus depreciation at 100% and strikes the phase-down schedule that was reducing it in prior years.

California: CA does NOT conform to federal bonus depreciation. You'll likely have to depreciate the truck over time on your CA return (no instant write-off), even if you take full bonus for federal. CA does allow Section 179, but with its own lower limits and narrower property rules.

What Counts as "Qualified" for 100% Bonus in 2025?

Property type: Tangible property under MACRS with a recovery period of 20 years or less generally qualifies. Trucks fall into this category. The regs say: "Depreciable property will meet the requirements if the property is MACRS property that has a recovery period of 20 years or less."

New or used: Used property can qualify if you meet the acquisition requirements - basically, you can't have used the property before, and the acquisition has to meet the rules in § 179(d). The code spells it out: "An acquisition of property meets the requirements if such property was not used by the taxpayer at any time prior to such acquisition, and the acquisition meets the requirements of paragraphs (2)(A), (2)(B), (2)(C), and (3) of section 179(d)."

Congress removed the phase-down and set the "applicable percentage" to 100% going forward. This is the current law for property acquired and placed in service under the bill's effective-date rules.

Placed in Service: 

You only get bonus in the year the truck is "placed in service," meaning it's ready and available for its assigned business use - not just purchased. If you buy on 12/28/2025 but don't take delivery or start business use until 1/2/2026, you missed 2025 for bonus. Keep proof of delivery and first business use.

The regs are clear: "Qualified property meets the requirements in § 1.168(k)-1(b)(5) (placed-in-service date)."

Is a Ram 3500 Rebel a "Passenger Automobile" (Luxury Auto Cap)? No.

The 280F "luxury auto" caps generally hit "passenger automobiles" under 6,000 lbs GVWR. A Ram 3500 truck is typically well over 6,000 lbs GVWR, so the 280F dollar caps don't apply. The code defines it: "Passenger automobile means any 4-wheeled vehicle rated at 6,000 pounds or less. In the case of a truck or van, clause (ii) [uses] gross vehicle weight."

But vehicles are still "listed property" if they're "used as a means of transportation," so you need more than 50% business use, mileage logs, and you face recapture if business use later drops. The code warns: "Then any excess depreciation shall be included in gross income and depreciation shall be determined under section 168(g)."

Section 179 vs. Bonus — How They Work (and the "SUV" Trap)

Section 179 lets you elect to expense qualifying property up to annual dollar caps, limited by business taxable income, with carryforwards. Election is made on the return for the tax year the asset is placed in service. The statute says: "A taxpayer may elect to treat the cost of any section 179 property as an expense allowed as a deduction for the taxable year in which the section 179 property is placed in service."

There's an income limit: "The amount allowed shall not exceed the aggregate amount of taxable income from the active conduct of any trade or business."

For 2025, the statute shows increased base amounts with inflation adjustments. Confirm your exact numbers when you file, but the base caps are substantially higher than they used to be.

"SUV" $25,000 cap (federal § 179 only): SUVs not subject to 280F and ≤ 14,000 lbs GVWR are capped at $25,000 expensing (inflation-adjusted). But pickups with an open cargo bed ≥ 6 feet are excluded from "SUV" and can avoid the $25,000 cap. Many Ram 3500s qualify for this pickup exception.

The code says: "The cost of any sport utility vehicle under this section shall not exceed $25,000," but "Such term does not include any vehicle which is equipped with a cargo area of at least 6 feet in interior length which is an open area."

Bonus vs. 179 strategy: If you want simplicity and full write-off, bonus (now 100%) often wins federally. If you want to limit or time the deduction (to avoid NOLs, for example), § 179 gives you control and is limited by income. You can mix them - generally apply § 179 first, then bonus, then regular MACRS. The regs address how they interact: "Unadjusted depreciable basis reflects any portion of the basis the taxpayer properly elects to treat as an expense under section 179."

California (FTB) Non-Conformity You Need To Know

No bonus depreciation in CA: California does NOT conform to IRC § 168(k). You'll have to adjust off federal bonus on your CA return and depreciate using CA methods. FTB instructions are explicit: "California law does not conform to IRC Section 168(k) relating to the depreciation deduction for certain assets."

CA and § 179: California does not conform to the enhanced federal § 179 rules and the expanded § 179 property definitions. CA has its own lower dollar caps and phase-out thresholds. Translation: you might use § 179 as a partial California strategy, but it won't match your federal write-off, and the eligible property list is narrower. Check the current-year FTB instructions for the exact CA dollar limits applicable to your entity.

FTB says: "California law does not conform to the enhanced IRC Section 179 expensing election [and] expanded definition of IRC Section 179 property."

CA auto caps are different (and lower) and don't reflect federal 280F "bonus" bumps. For 2024, FTB published lower luxury auto and truck/van caps. 2025 will be similar with updated amounts. Heavy trucks like a Ram 3500 typically avoid passenger-auto caps, but CA still denies bonus, so your CA schedule will stretch deductions over years.

Practical Checklist (Ram 3500 Rebel, 2025)

1. Make sure it's a business asset, more than 50% business use. Keep a mileage log. If business use drops ≤ 50% later, expect income "recapture." The code: "Any excess depreciation shall be included in gross income and depreciation shall be determined under section 168(g)."
2. Confirm pickup bed length. If ≥ 6 feet open bed, you're outside the § 179 "SUV" cap. The code: "Cargo area of at least 6 feet which is an open area."
3. Placed in service in 2025. Take delivery and start business use by 12/31/2025 to get the 2025 deduction year.
4. Federal: Decide 179 vs. bonus. With 100% bonus back on the table, many owners will just bonus the full cost. Use § 179 if you need to limit to your business income or fine-tune the deduction.
5. California: Plan for an add-back/adjustment. No CA bonus. Consider using CA § 179 (subject to CA's own smaller limits) to accelerate part of the cost on your CA return.

Example — How This Might Look

Facts: You buy an $82,000 Ram 3500 Rebel on 9/20/2025, take delivery and start business use 9/25/2025, 90% business use, open bed more than 6 ft.

Federal 2025:

• Not a passenger auto under 280F (§ 280F(d)(5))
• Eligible for 100% bonus: deduct about $73,800 (90% business portion) in 2025, if you choose bonus (§ 168(k))
• Or elect § 179 up to limits/income; no SUV cap because of the ≥ 6 ft open bed exclusion (§ 179(b)(5)(B)(ii)(II))

California 2025:

• No bonus. You'll compute CA depreciation over years. Consider using CA § 179 to accelerate some cost, subject to CA's own caps/property limits.

Common Pitfalls

• Forgetting "placed in service" timing (delivery/use date controls the tax year)
• Not keeping mileage logs (listed property rules - IRC § 280F(d)(4))
• Triggering recapture if business use drops ≤ 50% (IRC § 280F(b)(2))
• Mixing up SUV vs. pickup rules for § 179's $25,000 cap (the 6-foot open bed exception often saves pickups - IRC § 179(b)(5)(B)(ii)(II))
• Assuming California follows federal (it does not for bonus and doesn't fully conform for § 179)

Conclusion

For a Ram 3500 Rebel placed in service in 2025 and used more than 50% for business, federal law now generally allows a full write-off in year 1 via 100% bonus depreciation. You can alternatively use § 179 to fine-tune the deduction.

The truck's GVWR usually removes it from the "luxury auto" caps, and if it has an open bed ≥ 6 feet, it avoids the § 179 "SUV" $25,000 cap. Keep mileage logs and watch the more than 50% business use rule to avoid recapture.

California will not allow federal bonus. Expect to add back on your CA return and consider using CA § 179 (with lower limits and narrower rules) to accelerate some of the cost for CA purposes.

In Essence

Buy a heavy work truck in 2025, place it in service, and you can typically expense it all for federal taxes via 100% bonus - just keep it more than 50% business use and document it. California won't follow that bonus; you'll spread deductions out unless you use CA's smaller § 179 to speed some of it up.