100% Bonus Depreciation Is Back: Here’s How Business Owners Can Maximize It with Equipment Financing

2025 is shaping up to be a pivotal year for business growth. Thanks to the newly passed "One Big Beautiful Bill Act" (OBBBA), business owners can once again fully deduct the cost of qualifying equipment in the same year it's placed into service.

This means when you buy or finance new equipment in 2025, you can deduct 100% of the purchase price upfront—delivering substantial tax savings and improved cash flow.

For businesses that depend on vehicles, heavy machinery, or mission-critical equipment, this legislative change is a genuine game-changer. And when combined with strategic financing, it becomes a powerful way to fuel expansion without depleting your cash reserves.

What Is Bonus Depreciation?

Bonus depreciation is a tax incentive that allows businesses to accelerate deductions on certain assets. Rather than spreading the write-off over multiple years, you can deduct the entire purchase cost in the year the equipment is placed in service.

The updated law reinstates 100% bonus depreciation for qualifying assets placed in service after January 19, 2025. It applies to both new and used equipment, as long as the asset is "new to you."

Here's what that looks like in practice: purchase a $200,000 piece of equipment, and you can write off the full $200,000 on your 2025 taxes, potentially saving $40,000–$60,000 or more, depending on your effective tax rate.*

Section 179 Updates: Expanding Opportunities for Small and Mid-Sized Businesses

The OBBBA also significantly increased Section 179 deductions, which work in tandem with bonus depreciation.

Starting in 2025:

• You can expense up to $2.5 million in qualifying equipment purchases (up from $1.22 million)

• The phase-out threshold jumped to $4 million, allowing more businesses to benefit before limits kick in

This means small and mid-sized companies planning multiple equipment purchases can now deduct considerably more, all while preserving capital for payroll, inventory, or strategic growth initiatives.

Why This Matters for Your Business

The combination of 100% bonus depreciation and expanded Section 179 delivers three critical advantages:

• Massive upfront tax savings that hit your bottom line immediately

• Reduced taxable income in the same year you acquire equipment

• Improved cash flow and faster ROI on capital investments

Consider this example: You purchase $350,000 worth of equipment in 2025. Under the new law, you could deduct the entire amount that year. With an effective tax rate of 25%, that translates to $87,500 in tax savings, money you can immediately reinvest into operations, hiring, or expansion.

The Strategic Advantage: Finance Your Equipment and Still Deduct 100%

Here's where the opportunity becomes even more compelling—you don't need to pay cash upfront to qualify for the full deduction.

Even when you finance equipment, you can still deduct the complete purchase price in the year you place it into service. This allows you to:

• Preserve working capital for day-to-day operations and growth initiatives

• Lock in immediate tax benefits while spreading payments over time

• Maximize buying power without overextending your cash position

At Capital Infusion, we specialize in helping business owners structure fast, flexible financing that aligns seamlessly with tax strategy. Whether through direct lending, equipment loans, SBA-backed programs, or lines of credit, we make it simple to get approved and funded in days—not weeks.

Why Timing Is Critical

To qualify for 100% bonus depreciation, equipment must be placed in service after January 19, 2025. Early planning is essential.

Now is the time to:

1. Identify the equipment your business needs for 2025

2. Get pre-approved for financing so you can act quickly when opportunities arise

3. Consult with your CPA to confirm how the deduction integrates with your overall tax strategy

When the window opens, you'll be positioned to capitalize fully—without delays, complications, or missed opportunities.

The Bottom Line

The return of 100% bonus depreciation isn't just a tax update—it's a catalyst for strategic growth.

It empowers business owners to upgrade equipment, expand operations, and reinvest in their future while minimizing tax burden and preserving precious working capital.

With Capital Infusion's streamlined equipment financing, you can act now, secure your funding, and position your business for breakthrough success in 2025.

Ready to Maximize Your Tax Savings?

Connect with a Capital Infusion funding advisor today to discover how much you qualify for and how to structure financing that delivers maximum tax advantages while fueling your growth.