Take Advantage of Expanded U.S. Tax Benefits

 

Now is the perfect time to invest in your business with a new machine tool! The recent passage of the One Big Beautiful Bill Act has expanded tax benefits for manufacturers in the United States, including the highlights below.

SECTION 179 DEDUCTION – IMMEDIATE EXPENSING FOR SMALL TO MID-SIZED BUSINESSES

• Deduct up to $2,500,000 in qualifying equipment purchases placed into service between January 19, 2025 and December 31, 2025.
• Designed to help businesses reduce taxable income by writing off the full cost of eligible equipment in the year it’s placed into service.
• The deduction begins to phase out when total equipment purchase exceeded $4,000,000 with thresholds through 2030.

BONUS DEPRECIATION – 100% WRITE-OFF FOR EXCESS COSTS

• After applying Section 179, any remaining cost may qualify for 100% bonus depreciation. There is no dollar cap on the amount of Bonus Depreciation a business can claim each year.
• Applies to new and used equipment placed into service between January 19, 2025, and January 1, 2030.
• Unlike Section 179, bonus depreciation is not limited by taxable income – it can be forward as a net operating loss (NOL) for future tax planning.

To calculate your estimated tax deductions and equipment savings opportunities from U.S. Tax Section 179, visit Section 179.org. Please note that this page might not reflect the latest updates from the One Big Beautiful Bill Act.

We strongly recommend consulting a licensed financial professional regarding ways in which these updates may affect the tax implications for your business.

The One Big Beautiful Bill Act is a comprehensive piece of tax legislation that was passed by the U.S. Congress and signed into law by President Trump on July 4, 2025. This bill affects multiple areas of tax law, including those that impact the manufacturing industry.