In the construction and heavy equipment business, every dollar counts. That’s why the One Big Beautiful Bill Act, specifically the expanded bonus depreciation rule under Section 168(k) of the tax code, is such good news for our customers.
This legislation allows you to write off 100% of qualifying equipment costs in the first year, creating huge opportunities for cash flow savings and reinvestment especially when you partner with Cleveland Brothers for a rebuild or reconditioned machine.
What Is Bonus Depreciation and Why It Matters
Bonus depreciation lets businesses deduct the entire purchase price of qualifying equipment in the same year it’s placed in service, instead of spreading that deduction over several years.
Here’s why it’s such a big deal:
- 100% First-Year Write-Off: Deduct the full purchase price of qualifying equipment the same year you start using it.
- Immediate Cash Flow Advantage: Reduce your taxable income now and reinvest the savings into more equipment, operations or growth.
- No Dollar Cap: Unlike Section 179, there’s no limit to how much you can claim.
In short, this provision rewards smart investments in your fleet whether that means buying new, used or rebuilt Cat® machines.
Rebuilds Count Too
One of the biggest advantages of the One Big Beautiful Bill Act is that dealer rebuilds and reconditioned equipment can also qualify. When you rebuild through Cleveland Brothers, you can potentially deduct 100% of your rebuild costs under current bonus depreciation rules.
Dealer-Rebuilt Equipment
If we perform a rebuild for you, the entire rebuild cost, including parts and labor, qualifies. That means the money you invest in extending your machine’s life can deliver immediate tax benefits.
Even if you’re rebuilding a machine that’s already in your fleet, you can still benefit. The original purchase price doesn’t qualify again, but the rebuild costs do.
For example:
You bought a dozer in 2018. In 2025, you rebuild it at Cleveland Brothers for $200,000 (engine + powertrain). That $200,000 rebuild cost qualifies for 100% bonus depreciation giving you a powerful tax advantage while extending the life of your equipment.
Why This Matters for Your Business
A certified rebuild from Cleveland Brothers already delivers exceptional value extending the life of your machine, restoring performance and reducing total ownership costs.
Now, with bonus depreciation, it also delivers:
- Major upfront tax savings
- Improved cash flow for reinvestment
- Lower total cost of ownership for your rebuilt fleet
This combination of long-term reliability and short-term financial advantage makes a rebuild one of the smartest investments you can make in 2025.
Talk to the Experts at Cleveland Brothers
Our team can walk you through the rebuild process and help you understand how your investment might qualify under the One Big Beautiful Bill Act. Whether you’re rebuilding a dozer, articulated truck or engine, we’ll ensure your equipment is operating like new and your business is positioned to save.
See if a rebuild is the right move for your fleet
Our team can walk you through the process and help you understand potential 2025 savings.
