Tax Benefits & GPS Fleet Tracking | Save on Taxes!

One of the most well-known quotes about taxes is “in this world, nothing can be said to be certain, except death and taxes.” Even in 1783, people realized that taxes are a constant! Interestingly, tax benefits & GPS fleet tracking go hand-in-hand.

What is the relationship between tax benefits & GPS for fleets? They both relate to fleet management. Part of fleet management includes maximizing tax benefits while reducing tax costs.

Three examples of tax benefits & GPS fleet tracking include:

  • S. 179
  • Carbon tax
  • Business tax benefits

Section 179 (US)

Section 179 is a tax opportunity for GPS tracking programs. Here’s a quick tax review.

Normal Asset Tax Treatment

The IRS allows for “deprecation”. In other words, depreciation accounts for an asset’s wear and tear. As a result, businesses are allowed to deduct a percentage of assets as a tax credit.

What is Section 179?

Section 179 provides an opportunity between tax benefits & GPS fleet tracking. With this section, businesses can elect to deduct $2.5 million of equipment purchase in 2018. Hence, fleets can include out-of-the-box programs like fleet tracking tools in this exemption.

How does the math work?

Think about a $100,000 investment and a 30% tax rate. Normally, only a small portion of $100,000 is allowed to be deducted. However, with Section 179, fleets can get a $30,000 tax credit by deducting the full $100,000 at the 30% rate.
GPS Tracking Tax Deduction

Carbon Taxes (Some states & provinces)

Some provinces and states have carbon taxes.

What is carbon tax?

Carbon tax means that the government collects tax money for each metric ton of greenhouse emission. For example, in Alberta, the government is collecting $10/ metric ton of 2018 emissions. That rate is expected to increase to $50/ metric ton by 2022.

How do fleets cause emission?

Within fleet businesses, operating company vehicles is one of the biggest contributors to gas emissions. Some of the common causes include:

  • Poor driving habits. Drivers that drive aggressively or leave their vehicles idling are costing their business! Bad drivers increase total business cost by both wasted fuel and carbon tax.
  • Bad vehicle maintenance. To counter the first bullet point, it’s not always the driver’s fault. Sometimes, bad vehicle maintenance leads to bad vehicle fuel performance. Old and aging vehicles produce more emissions than newer vehicles!
  • Route management. Finally, some fleets travel inefficient routes. Drivers waste time on the road because their routes are longer than needed.

fleets reduce emission

How can fleets reduce emission?

Many fleets have policies and programs to counter gas emissions. For example, some fleets have a zero-idling policy. Zero-idling means that drivers are not allowed to idle at all. Fleet managers can look at watchdog reports to flag rule breakers.

Beyond no-idling, some other ideas include remapping driver routes, regular vehicle maintenance, and driver training.

Business Tax Benefits (Some states & provinces)

S. 179, discussed earlier in this article, talks about equipment purchase. What about tax benefits after the equipment purchase? Two examples of tax benefits earned during fleet operations include business-use expenses and PTO.

Business-Use Expense

When vehicles are used for business, it is classified as a business expense and is tax deductible. One of the biggest challenges, however, is administering the tax.

“When you apply for tax credits, you have to be very careful to submit the right numbers. We used to double check our files for accuracy,” said a fleet administrator. “Nowadays, most fleets have a tracker to record business use miles. We can trust our tracker to get the right numbers.”

Business Vehicle Deduction


PTO, or power take off, is another tax benefit. Some states and provinces allow businesses to get a rebate when vehicles use PTO. As a result, PTO equipment such as snow plows, cleaners, and construction vehicles track their PTO hours.

Interested in tax benefits & GPS fleet tracking? Ask a GoFleet fleet consultant.

Wood Business: The impact of a federal carbon tax on Canadian businesses
Section 179: Section 179 Deduction

How much does fleet tracking cost?

Here is a FAQ. How much does fleet tracking cost?

Fleet tracking consists of both hardware and software. In this post, we will explore each of the two areas to determine how much does fleet tracking cost.

Hardware & Installation

Hardware is the first part of the total fleet tracking cost. There are usually three hardware alternatives:

Mobile tracking

Mobile tracking is the first hardware alternative. In other words, the fleet tracks its vehicles through their drivers’ phones. A lot of mobile apps are good enough to provide location updates and even location reports.

Of course, since mobile tracking uses a driver’s smartphone, there are no hardware costs and no installation costs.

Plug-in device

Device tracking is the second hardware alternative. In this scenario, plug-in devices are connected to vehicles. Compared to mobile tracking, a plug-in device provides additional data such as advanced driving habits and vehicle diagnostics.

Device costs vary based on the model. For example, some online products can go for less than $100. However, business-level devices can cost up to $200 – $500.

What about installation? Customers usually self-install plug-in devices and save on installation charges. Simple plug-ins can be done in a few seconds. Secure discrete plug-ins, on the other hand, might take the average person 10-15 minutes to install.

Hardwired solution

Hardwiring is the third hardware alternative. Typically, hardwiring is required when vehicles are too old to have plug-in models.

Hardwiring usually has the highest cost of the three alternatives. Since hardwiring requires professional installation, the start-up fee could cost more than $1000. Another cost is lost business time. The business loses revenue-generating time when the vehicles are in the shop rather than on the road.

Software Service

The software is the second part of the fleet tracking system price. Why is there a monthly charge? There are two big reasons:

Cell/satellite service. Here’s a role reversal – how much does fleet tracking cost to a provider? Providers need to pay for SIM cards, cell service, or even satellite service to provide vehicle tracking. This cost is reflected in the monthly fee.

Software and service. Fleet tracking doesn’t mean looking at a map all day! Fleet tracking systems are similar to office programs like Microsoft Office. The program collects data and generates reports. It is also supported by success teams that train customers, solves technical problems, and suggest data-driven business solutions!

So how much does fleet tracking cost monthly? There are usually two ways to charge monthly – on tier plans or on customized pricing.

Tier Plans

Tier plans are similar to cell phone plans. Just like cell plans, there are different levels of service and pricing – all with their own features! In that case, one customer might pay $25/month whereas another pays $80/month!

Customized Pricing

Customized pricing, conversely, is more like an à la carte service at a restaurant. You only pay for what you use! “Some customers only need fleet tracking for 2 or 3 reasons,” said a sales manager. “Customers sometimes are locked into bundles where they don’t need the other 5 features and are being overcharged. Instead, a better way to retain customers is balancing functionality with pricing.”

Contact our consulting team to discuss pricing an estimate!

Why Fleet Vehicle Tracking is Important for Your Business

Fleet vehicle tracking is important because it squashes problems and lets fleets run smoothly. Here are some common pain areas that tracking systems resolved.

Common Pain Areas Solved by Fleet Vehicle Tracking

“What the heck are my drivers doing?”

Pain area: Accountability, customer service.

One of the biggest issues for fleets is supervising drivers. Here are some examples of dishonest drivers:

  • Some drivers were caught taking leisure rides in company vehicles and on company time. Instead of serving customers, they drove to other places – ranging from their home to local hangouts.
  • Other drivers were caught using vehicles for personal business. For example, a snow plow business caught a driver that used the company vehicle to take side jobs.

All of these issues were solved when vehicles were tracked. Besides rooting out dishonest employees, location tracking is also used for customer service.

For businesses that need to update customers on their service, real-time location tracking is an easy way to get and share info. Some businesses even took it a step further and uploaded the tracking data to a customer accessible web portable.

Pain Areas Solved by Fleet Vehicle Tracking

“Don’t tell me we got in another accident!”

Pain area: Safety, liability.

Running a fleet of vehicles can be risky. Some companies were held legally liable for accidents. For example, a trucking company owner was jailed because he encouraged unsafe driving practices. Other companies lost thousands of money from traffic tickets, fuel wastage, and lawsuits.

A great way to reduce safety risks is to use fleet vehicle tracking to actively train drivers. Fleets were able to create and enforce rules, from classic speeding rules to more advanced driving habits.

For example, one company required all drivers to back into parking spots because reverse parking is safer than head-in parking. They created a reverse parking rule. With vehicle tracking, the fleet created and monitored parking reports. As a result, the company got their entire fleet to buy into the parking policy and significantly decreased parking lot accidents.

fleet vehicles risks

“How am I spending this much money on fuel?”

Pain area: Operation cost

Fuel is a huge operating cost. It hasn’t helped out that fuel prices have spiked over the past year. The most effective adaptors, however, came from companies who tracked and monitored fuel use.

For example, a common idea to save fuel is controlling idling. A lot of fleets have a no-idling policy and need a way to enforce the policy. Enter fleet tracking! With vehicle tracking programs, fleets were able to set idling limits and work with drivers that exceeded those limits.

Another idea is creating smart routes. For companies that answer multiple daily service calls, a challenge is to figure out what is the most efficient way organize the driver’s day. Route planners calculate the order of the route, the directions of the route, and how long to spend on sites. As a result, fleets took on more jobs throughout the day.

smart routes for fleets


Fleets have a lot of pain areas to deal with. Driver accountability. Safety. Fuel costs. The list goes on. Fleet vehicle tracking is valuable to fleets because it gives fleet managers a tool to create solutions for these pain areas.


Sault Star: Judge hands transport owner 6 months jail

Geotab: Why Reverse Parking is Safer

Lower your Operating Costs with OnCommand Connection


Manage Diagnostics with OnCommand Connection


The Telematics industry is becoming more transparent allowing fleet managers to efficiently track company fleet and gain engine diagnostic information and measure fleet productivity all using fleet management software.

In today’s economy, companies are trying to reduce operating costs by any or all means. As one of the top business operating expense, fleet managers are under pressure to keep costs as lean as possible while continuing to maintain productivity. This often leads to keeping vehicles on the road for an extended period of time leading to a huge cost build-up in the long run.

Company operations and profitability is most affected during vehicle downtime and to help fleet managers avoid make clouded decisions GoFleet has partnered with OnCommand Connection for engine diagnostic information and immediate maintenance. Basically, a partnership to help identify the potential problem beforehand, lower repair costs and eventually increase fleet uptime.

How Can GoFleet Help?

For Sales Managers:

Offering an effective fleet management program will help sales managers offer an all rounded service i.e. Vehicle + OnCommand Connection. This adds value to the dealership by providing customers with the ability to streamline their business.

How we help you sell more vehicles:

  • We add value to your vehicle sales by offering various Fleet Management Programs for resale:
  • Oncommand Connect, Tracking, Dispatching, HOS/DVIR Compliance, Reefer Temp Monitoring, Fuel Card Integration and Work Form Programs.
  • We help onboard new customers with their Fleet Management Program, enhancing purchasing experience.
  • We help your customers understand how to save money and work with your dealership on service, ensuring they come back to you for future purchases.

For Service Managers:

Maximizing service and providing the best customer experience can be especially challenging when you don’t have up to date information on the health of your vehicles.

How we help you increase service and improve customer experience:

  • Get up to date odometer and engine hours without having to call the customer
  • Get notifications on high priority faults in real-time via OnCommand Connect

To learn more about OnCommand Connection contact us and we will be happy to discuss its benefits and features with you!


Gain Savings with Smart Fleet & Fuel Management

Smart Fleet Fuel Management: your next step to maximizing company profits


GPS Tracking currently allows you to track, locate and communicate with drivers in real time. Fleet operation managers use the solution to manage their drivers and maintain their fleet through location tracking and custom reports that address and identify daily operations that need attention. Along with the responsibility of managing both drivers and fleet comes the accountability of lowering operating expenses.

Operating a cost-effective and efficient fleet often requires expertise in fleet expenses. With fuel being one of the largest contributor to the increase in operating costs, it is imperative that fleet managers understand the importance of minimizing expenses that can be controlled and avoided. So, how can you really maximize fuel management?

Smart Fleet Solutions

Managing fuel costs often begin by preventing unauthorized access to fuel supplies and implementing solutions that track your company assets. Although tracking is a small step to fuel management the solution is designed to measure fuel performance by:

  • Tracking vehicle and driver behaviours in real-time
  • Generating reports and scorecards on how drivers are contributing to fuel costs
  • Providing drivers with optimized (fuel-efficient) routes
  • Preparing detailed reports to assess the financial impact on fuel while idling, fuel usage and more

The reports provide an insight into the amount of fuel consumed idling or dangerous driving. The system is also able to generate reports that help companies gain tax rebates(IFTA report). IFTA can be generated to help significantly reduce paperwork and compliance burden for fuel tax reporting if vehicle carriers travel in other provinces/states and purchase fuel in one jurisdiction, but use the fuel in another jurisdiction.

Fuel Management Idling Report

Fuel Management with Driver Score Card

Fuel Management IFTA Report

As a solutions company we understand the importance of managing fuel-wasting behaviours further leading to integration with third party systems such as Fuel Cards.

A fuel card is similar to a credit card where fuel card transactions, vehicle data and driver behaviours can be tracked by matching vehicle location and the amount filled routinely. Giving fleet managers the knowledge and tools to manage fuel spent; fuel cards will eliminate the amount of receipts submitted regularly and also accurately verify the location of the fill up and amount filled into the vehicle.

Acting as the most secure, efficient and simple way for fill ups, the program will alleviate some of the pressure off fleet managers by allowing them to focus not just on matters of security but also on wider operational concerns.
Fleet managers are able to analyze transactions according to specific criteria’s such as where, when, and by whom the fuel card was used. The system will be able to also provide personalized alerts if a payment occurs outside the “normal” pattern or exceeds a pre-set maximum fill-up limit. This, in turn, means potential fraudulent behavior can be detected early and fleet managers can respond swiftly.

Find out how GoFleet’s fuel management strategies can help you minimize expenses by contacting us at 1-888-998-1122.

Improve Fleet Management With Professional Fleet Consultants


Fleet Consultants Help You Improve Fleet Management


Many companies are already well aware that implementing a telematics fleet management system is very useful in terms of security, cost reduction, and quality of service offered to their customers. Unfortunately, there are many cases where they lack the necessary experience to implement these solutions within their organization. This can be anything from training on how to effectively communicate to drivers and unions about the system, management process changes, demos of how to achieve ROI, and other necessary training activities. For these reasons, our fleet consultants offer professional services to our customers.

Understanding company challenges, technical goals, and requirements are some of the key responsibilities our team takes on. Our highly trained fleet consultants help our customers during these processes in the following ways:

  • Business Case Production: Analysis of KPIs (Key Performance Indicators) and customer needs, recommendations, and demonstrations of the functionality of the solutions.
  • Change Management: Communication programs such as management training and how to properly introduce GPS tracking to your drivers.
  • ROI Consulting: Benchmarking in multiple areas, demonstrating substantial savings, tracking obtained improvements, and detecting non-compliance areas.
  • Various Training activities: Different levels of training for various departments (eg. management, admin, middle managers, and best practices manuals to maximize the systems benefits).

One of the most common activities for our fleet consultants is the demonstration of tangible benefits during a pilot program. This can be a challenging activity because benefits should be demonstrated with a reduced number of vehicles and drivers in a relatively short period of time (typically only one or two months). This is the best way to demonstrate the solution benefits to the potential customer. Benefit areas depending on the company can be quite different and can vary depending on customer activity and targets.

The most typical areas of potential benefits (KPIs) are:

  • Maintenance: Consistently servicing on time to reduce wear & tear
  • Day-to-Day Efficiency: Improved daily operations through reactive planning and detailed route analysis.
  • Route Planning: Reduced travel time through optimization, visualization and measurement.
  • Utilization: Use percentage, amount of time at location, straying from job site.
  • Out of Hours: Tax compliance and proper overtime validation.
  • Risk and Duty of Care: Driver behavior such as speeding and idling, monitoring CO2 emissions, lowered insurance.
  • Fuel: Reduce use through details on consumption, and identifying idling and driver behavior.
  • Contract Adherence: Billing evidence, SLA compliance.

GoFleet works along side our customers to help measure their KPIs in order to improve driver and fleet performance, and ultimately achieve the desired ROI.


Get in touch with one of our fleet consultants to find out
how you can optimize your business and save money:

1-888-998-1122 | [email protected]


Original Article By: Antonio Venutelli, European Solutions Engineer at Geotab


Find Your Fleet Savings with GoFleet

Estimate Your Total Savings With Our ROI Calculator

Have you ever estimated how much money your company can save with telematics technology? The implications of using a tracking solution goes beyond improving security and better monitoring employees. It is in fact more useful when organizations understand how the solution can gain true savings and return on investment (ROI).

Along with tracking your employees, it is significantly important to measure your return on investment. Monitoring the location of your vehicles alone will not have a positive impact on your bottom line unless close attention is paid to the difference in time spent idling, number of repairs, negative driver behaviours and more.

For some, the cost of the GPS solution has left fleet managers to avoid investing in tracking. And to help quantify the value of our fleet solution, GoFleet has created a tool to help with your business decisions. The ROI calculator is designed to give you an insight of expenses you could be be potentially saving and it can be customized to meet your business profile to show you how much money can be reinvested back into your company as shown in the example below.

Fleet Savings Company XYZ
ROI Fleet Savings

The calculator instantly shows you an estimate of what can be saved if fleet operation managers choose to implement a fleet tracking system. Although these figures are just estimates, there is a chance that companies can save even more when drivers become familiar with the solution and become more productive. To compliment the ROI calculator fleet managers should identify the areas that require improvement prior to installing the tracking solution. This can involve anything from increasing fuel expenses, higher maintenance costs or even decreasing productivity. Identifying the issues that need attention can then help outline the true purpose of the solution by comparing the “before” and “after” figures of cost savings.

In any buying decision it is crucial to explore all your options, read customer reviews, and learn more about the costs involved in the daily operation of your business however it is more important to gain a ROI figure along with the final decision made.


To try our ROI calculator for yourself & see your potential savings,
simply visit our homepage:

GPS Fleet Management Technology Cost Savings

GPS Fleet Management Technology: How to Realize Cost Savings

Something all companies can relate to is that they are always looking for ways to grow their profits. A proven way to reduce fleet costs and increase profits is through more efficient use of fleet vehicles. This can be achieved in multiple ways such as: reducing fuel costs, optimizing on-road driver productivity, and monitoring and improving vehicle maintenance. To assist fleet managers in developing a positive business case for investing in GPS fleet management technology, this articles will focus on some cost reducing and expense consideration elements. Through identification of these elements and associating the savings of managing them you will be able to put together a business case for taking action based on facts!

How will I justify an investment from my company in GPS fleet management technology?


Start by taking a look at the investment:

Calculate the one-time upfront costs for the GPS tracking device and the monthly reoccurring fees. Also consider whether or not the device is plug-and-play (self installed) or if you will have to install a professional installer (addition cost).

Then take a look at the cost savings:

GPS fleet management technology provides benefits from the utilization of valuable data.

1. Fuel Savings

Reduce fuel consumption by:

  • Reduced speeding – the system has the ability to remind drivers immediately when over speed limits.
  • Take advantage of in-vehicle driver coaching alerts to manage idling.
  • Utilize fuel reports to get fuel consumption data for your entire fleet and driver behavior reports/trends over time.
2. Route Optimization Cost & Time Savings

Reduce labor and fuel costs by:

  • Regularly review real-time information such as optimal daily delivery routes.
  • Fleet managers can view all vehicle locations in real-time and can provide important information to drivers to make fast and accurate deliveries.
  • Dispatch drivers effectively with our route optimization tool; locate and direct drivers to dispatch the closest driver to a destination, avoid traffic, or alter routes if additional stops become needed.
  • As a fleet manager you can track driver behavior that directly translates into increased fuel costs. Also, you can compare vehicles or drivers with one another to target improvement areas.
3. Maintenance Savings

Our GPS devices help determine a vehicle’s condition, performance, and when to schedule maintenance to avoid problems and breakdowns.

  • Completing maintenance at set time intervals is great but then it is done regardless of mileage or usage; scheduled maintenance is based on actual vehicle use and performance.
  • This will help determine when your vehicles will need to be taken off the road for maintenance, reducing wasted maintenance expenses (eg. oil change) and downtime.
  • The GPS fleet management technology will help to identify less efficient vehicles or when vehicles should be placed on a shorter route.
  • Avoid engine issues before they result in vehicle down-time or costly repairs by managing your engine fault code information. These codes explain the engine issues (what it is & where to locate it) to help save on vehicle inspection costs and time.
  • When focusing on predictive engine health you’ll realize savings through pro-actively working with service technicians to pinpoint core problem areas.

Data offers an invaluable power. It will allow your company to set standards for your business, achieve higher levels of customer service and identify spare and/or underused equipment. The return on investment is driving the demand for GPS fleet management technology and raising the standards in fleet management. If you would like more information please feel free to give one of our fleet optimization specialists a call at 1-888-998-1122 or use our contact form and we will get back to you asap!


Original Article Written by: Robert Mowat, Geotab

Customers Benefit From Global Positioning System Technology

Global Positioning System Technology Benefits Customers

Companies are finding that Global Positioning System technology does not just benefit fleet management, it also benefits their customers. Many of these companies did not expect their customers to have more customer satisfaction or a better overall reputation.

When a company implements a GPS fleet management solution, they are able to provide more accurate time of arrivals, short time windows, quick dispute resolution, and they are able to take care of their customers in a more efficiently. In addition, the GPS technology helps them serve more customers each day while letting their employees get home as fast as possible.

Accurate Arrival Times

Customers really appreciate being given accurate estimated times of arrival. They will learn that they can trust the time you tell them your employee will arrive at the job site. Unlike many of your competitors, your customers will not be stuck waiting all day for your employee to show up at their location.

Short Time Windows

Since you will know exactly where all your vehicles are at all time, you will be able to provide your customers with short time windows. Instead of telling your customer that your driver will arrive sometime between 9 a.m. and 5 p.m., you will be able to provide a 30 minute service window. You will have your routes conveniently planned out before your drivers leave for the day.

Quick Dispute Resolution

Your dispatchers will be able to closely monitor all of your drivers’ whereabouts which will enable a fast customer dispute resolution. It can be difficult to resolve disputes without the proper documentation of when your employees were on site. With GPS technology, you will have accurate records of all your service calls.


GPS technology allows you to serve your customers more efficiently. Your dispatchers will be able to send the closest driver to your customer’s location. If your customer calls with an emergency service call, you will be able to get a driver right out to them.

Business Tracking Software Is Essential For Medium & Large Fleets

Medium & Large Fleets Find Business Tracking Software A Necessity

Businesses with large and intermediate size fleet operations are finding business tracking software an essential component of fleet management. With many vehicles and drivers, it is virtually impossible to keep up, provide routing and dispatching without it. Many fleet management companies are tailoring their software for these businesses to give fleet managers the relevant information they need to run a smooth fleet operation.

Large Fleets

Large fleets contain many moving parts that are usually spread over a wide geographical area. All vehicles must be accounted for and properly monitored at all times. Business tracking software can be customized for the business by department, geographical area or vehicle type to mimic the business’ internal structure.

When you have a large fleet, it is extremely important to find a business tracking software and fleet management solution with the capability of supporting a large amount of data and be able to interpret that data into information that you can use. The software solution needs to be able to help your fleet manager easily manage the entire fleet and all of your drivers. The software you select must be able to compile unlimited historical data within a reasonable amount of time.

Intermediate Size Fleets

Medium size fleets might not have thousands of vehicles but they still need to have GPS business tracking software to handle a large amount of vehicles easily. Customized tracking software can be integrated with their back office software to improve dispatching capabilities, productivity and vehicle maintenance management and much more.

Customized dashboards, alerts and reports can be created for different departments and people throughout your business. Business tracking software can help you stay in control of your medium sized fleet and prevent you from overlooking important issues. Automatic vehicle maintenance reminders can help fleet managers ensure all vehicles receive service in addition to extending the fleet’s lifespan.