Bonus Depreciation and the Big Beautiful Bill: Maximize Your 2025 Tax Savings

With the passing of the new “One Big Beautiful Bill Act” (OBBA), businesses now have multiple opportunities to benefit from major updates to federal tax policy. 

One of the most impactful changes is the return of 100% Bonus Depreciation. Without OBBA, this deduction would have dropped to just 40% this tax season. For business owners planning to buy or finance equipment, this means the potential to save thousands while expanding equipment.  

Today, we’ll explore what the restoration of 100% Bonus Depreciation means for your qualifying equipment purchases. 

What Is Bonus Depreciation? 

Depreciation is how businesses write off the cost of equipment over time. Normally, if you buy a $100,000 machine with a 5-year life, you’d only deduct a portion each year. That means smaller tax breaks spread out over several years. 

Bonus depreciation changes the game. With 100% bonus depreciation, you can deduct the entire $100,000 in the first year the equipment goes into service. That creates immediate tax savings and more cash in your pocket right away. 

Thanks to the One Big Beautiful Bill, businesses can once again claim 100% bonus depreciation on qualifying equipment placed in service after January 19, 2025. 

Why This Matters for Businesses 

This new policy creates a valuable opportunity for your company to expand its assets and invest in essential equipment. 

Businesses can immediately write off the full cost of qualifying new or used equipment in the year once it’s placed in service. As mentioned before, this upfront deduction directly reduces taxable income, which leaves more cash to your business rather than to taxes!  Meaning your business can keep more cash in hand to reinvest, hire, or pay down debt. 

But this benefit won’t last forever. That’s why it’s so important to take advantage of 100% bonus depreciation now, while it’s available. 

What Kinds of Equipment Qualify? 

  • Trucks, vans, vehicles, trailers 
  • Heavy equipment like bulldozers, excavators, or cranes 
  • Landscaping tools and machinery like stump grinders or woodchippers 
  • Computers, office furniture, and other equipment your business relies on 

If it’s tangible equipment you need to run your business, there’s a good chance it qualifies. 

Real-World Impact 

The restoration of 100% bonus depreciation is also a useful tool that can help businesses invest in the equipment needed on-site to grow.  

Here are some industry specific examples: 

  • Arborists & Landscaping Companies: Finance or purchase new chip trucks, woodchippers, or stump grinders, and deduct 100% of the cost immediately to improve cash flow. 
  • Towing & Recovery Services: Get new tow trucks or service vehicles, write off the full cost in the year of purchase, and free up cash for hiring or expanding service areas. 
  • Package & Delivery – Expand your business operations with new step vans and depreciate 100%; reducing taxable income and freeing funds otherwise used for taxes. 
  • Wastewater – Purchase new water well drilling rigs or water trucks after peak season, ensuring smoother day-to-day removals and higher savings.   

The One Big Beautiful Bill opens the door for all kinds of businesses to thrive. Don’t miss your chance to take advantage while 100% bonus depreciation is back. 

Act now- before the benefits end! 

With these new policies, there has never been a better time to invest in the equipment your business needs. Whether you are financing or leasing, the ability to immediately expense the full cost of equipment can strengthen your cash flow and give you more room to grow. 

Contact our team today to learn more about these tax savings and how we can structure financing solutions that will help you get the equipment your business needs this fall season.  

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