The recently passed One Big Beautiful Bill Act (OBBBA) brings welcome news for businesses in construction, forestry and other equipment-heavy industries. With key updates to federal tax policy, financing or leasing equipment became much more financially rewarding.*
Here’s a quick breakdown of the benefits:
- 100% Bonus Depreciation Restored
Businesses can now fully expense qualifying equipment purchases made after Jan. 19, 2025, with no phase-down or waiting. That means a new machine can lower your taxable income right away. - Section 179 Cap Increased
The expensing limit has jumped to $2.5 million, with a higher phase-out threshold of $4 million. This is especially helpful for small and mid-sized businesses looking to expand or upgrade their fleet. - Improved Interest Expense Deduction
By switching back to an EBITDA-based calculation, the OBBBA allows businesses to deduct more interest on financed purchases, resulting in more substantial cash flow and a lower total cost of ownership.
Together, these changes create a powerful incentive to invest in the equipment your operation needs to stay productive, competitive and safe on the jobsite.
*Every business is different. Talk to your CPA or tax advisor to maximize these new incentives for your business.
Need help choosing or financing your next machine? Our team is here to help.
