When it comes to running a business, paying taxes is inevitable — but paying more than you have to? That’s avoidable. One of the best tools available to help companies reduce tax liability and keep cash working in the business is Bonus Depreciation.
Thanks to the latest tax legislation, 100% Bonus Depreciation is back for all qualifying business property placed in service after January 1, 2025. That means if you purchase new or used equipment and put it to work in 2025, you can immediately expense the full cost — a true dollar-for-dollar deduction in the year the equipment goes into service.
Rising equipment costs are also on the horizon. Manufacturers have signaled that tariffs and increased production expenses will drive up pricing in 2026 and beyond. Investing in 2025 allows you to lock in today’s price and avoid those hikes.
Why Bonus Depreciation Matters
Smart businesses use every advantage to stay competitive. By taking advantage of Bonus Depreciation in 2025, you can:
- Lower your tax bill with a full write-off on qualifying equipment purchases.
- Preserve cash flow to reinvest in your business, reduce debt, or build working capital.
- Get ahead of rising costs as manufacturers are expected to raise prices in 2026 and beyond due to tariffs and increased production expenses.
It’s more than a tax incentive — it’s a strategic way to maximize your investments while keeping your balance sheet strong.
Timing is Everything
To claim the full 100% write-off, equipment must be purchased and placed in service before December 31, 2025. Acting early also lets you lock in current equipment pricing before anticipated increases hit.
And if you’re already in a safe tax position for 2025? No problem. Any unused Bonus Depreciation can be carried forward to offset taxable income in future years. Nothing goes to waste.
The Bottom Line
If you’ve been considering adding or upgrading equipment, 2025 is the year to do it. By investing before year’s end, you’ll:
- Secure today’s pricing.
- Receive a full 100% write-off through Bonus Depreciation.
- Strengthen your company’s financial position for the years ahead.
Your accountant will be proud. Your stakeholders will be happy. And your business will be positioned for growth.
Reach out to us today and secure your tax savings!
