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.