Tax Law Boosts Equipment Financing and Business Savings

For business owners looking to invest in growth, the One Big Beautiful Bill (OBBB) delivers sweeping changes that make it easier, and far more rewarding, to buy or finance new and used equipment. From 100% bonus depreciation to an expanded Section 179 cap and improved interest deductions, these updates could mean significant tax savings and stronger cash flow for companies planning capital investments.

If you’ve been waiting to upgrade equipment, now might be the best time in years to act. Here’s what’s changing and how your business can take full advantage:

• Bonus Depreciation – Now 100%
  Businesses can deduct 100% of the cost of qualifying assets in the first year they’re placed in service. This permanent change means faster write-offs for equipment, machinery, vehicles, technology and other eligible assets, eliminating the wait of long depreciation schedules.
  
• Section 179 Expensing Cap Increase
  The Section 179 deduction limit increases to $2,560,000 for 2026, with phase-outs beginning at $4,090,000. This provides more flexibility for businesses making significant equipment purchases, from machinery and vehicles to technology upgrades.
  
• Interest Expense Deduction Enhanced
  The law lets businesses deduct more interest on financed equipment by using EBITDA instead of EBIT (because it adds back depreciation and amortization). This improves cash flow and lowers borrowing costs.

For a quick overview, click here or the chart to see key comparisons.

Ways Your Business Can Save

Businesses spending under the threshold on qualifying equipment can maximize year-end savings by combining tax deductions with smart equipment financing. By combining Section 179 and equipment financing, businesses can deduct the full cost of qualifying equipment while only paying a fraction upfront. This strategy can make the tax savings exceed the monthly equipment payments, improving cash flow and freeing capital for growth.

What It Means for You

The One Big Beautiful Bill is a powerful opportunity for businesses ready to invest in their future. With 100% bonus depreciation, increased Section 179 limits, and more generous interest deductions, it’s never been easier—or smarter—to finance equipment purchases that fuel growth. Talk with your tax or financing advisor to make sure you’re positioned to capture every benefit these new incentives offer.

Don’t wait—acting before year-end could turn valuable tax savings into real cash flow advantages, helping your business stay competitive and grow faster.

Ready to save? Complete the form and let’s explore your financing options today.