What Fleets Should Know about the Taxpayer Relief Act
Within the 2012 Taxpayer Relief Act, the maximum amount of Section 179 deductions has been changed and bonus depreciation extended.
Within the 2012 Taxpayer Relief Act that aimed at avoiding the "fiscal cliff," what deductions and relief are available for fleets and small businesses?
Section 179 Deductions: This section of the tax code allows businesses to deduct the cost of certain new and used property, which includes certain motor vehicles, placed into service within the tax year.
REVISED LAW: The maximum deduction has been extended for companies with less than $2 million in qualifying capital expenditures for the 2012 and 2013 tax years to $500,000.
Bonus Depreciation: This provision allows small businesses to deduct the cost of new equipment purchased within the tax year. This is used after the $2 million limit in capital equipment purchases is reached, and can be used by businesses that will have a net loss in operating costs in 2013.
EXTENDED LAW: The Taxpayer Relief Act of 2012 extended bonus depreciation by permitting the depreciation of 50% of the cost of new equipment in the first year.
Other tax credits available to businesses include an R&D tax credit that had expired in 2011 that is retroactive for the 2012 tax year and applies to 2013.
There are additional credits available for small businesses that should be discussed with your tax adviser, as well as the deductions and credits discussed in this article, as this should not be used as official tax advice.
More information on Section 179 and bonus depreciation can also be found at www.section179.org.
More Operations

What's Best Handled by an FMC, and What's Better Done Directly?
Fleet managers continue to rely on FMCs for essential services but are taking a closer look at where working directly with suppliers can improve efficiency and responsiveness.
Read More →
Fleet Meets: Erin Gilchrist
Meet Erin Gilchrist, the inaugural Mike Antich Spirit of Fleet Award winner, as she shares insights on leadership, mentorship, the power of industry connections, and why people remain at the heart of fleet's future.
Read More →
How 2026 Fleet Visionary Jamie McKay Manages 2,400 Vehicles Across 37 States
How do you keep 2,400 vehicles running across 37 states? Fleet Visionary Award winner Jamie McKay shares how collaboration, flexibility, and a few simple strategies help her tackle fleet management challenges at Aptive Pest Control.
Read More →
Managing Fleet Costs in an Era of Permanent Volatility
Fleet operating costs have risen more than 20% since 2020, raising a key question: When does extending a vehicle's service life stop making financial sense?
Read More →
The Next Evolution of Fleet Management: Autonomous Operations
This opening keynote session at the Fleet Forward Conference highlights the future of autonomous driving for fleets.
Read More →
How to Reduce the Total Cost of Risk From Catalytic Converter Theft
A stolen catalytic converter can cost fleets far more in downtime and lost productivity than in repairs. A total-cost-of-risk approach can help fleet managers quantify their exposure and prioritize theft prevention.
Read More →
Personal-Use Charges Rise as Vehicle Values Fall | AF News Recap
Personal-use charges are climbing, wholesale used-vehicle values are declining, and commercial fleet sales growth is slowing. This week, we're breaking down the latest fleet data, plus how Element Fleet Management is helping Waymo prepare for its first Canadian robotaxi market.
Read More →
Here's When You Should Make an Exception to Fleet Policy
Fleet policies are designed to create consistency, but not every driver or situation fits neatly within standard rules.
Read More →
AI-Native or AI-Acquired: What Should Fleet Managers Look for in an AI Platform?
Six questions can help fleet managers look beyond AI marketing claims to evaluate integration, data access, and real-world operational performance.
Read More →
A buyer's guide to fleet management software in 2027
Buying fleet management software in 2027 means looking beyond features and price. As fleet operations, technology and expectations evolve, this guide explores what today’s fleet professionals should consider when choosing a system that can deliver value now and adapt to what comes next.
Read More →
