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Bonus Depreciation

Work smarter. Deduct harder.

It’s that time of the year again!

Thanks to new tax law changes, businesses can now take advantage of higher Section 179 deductions and permanent 100% bonus depreciation on qualifying equipment purchases. That means more cash flow, bigger write-offs, and less waiting to see the benefits of your investment. Blanchard Machinery is here to help you understand these opportunities and find the right equipment for your business.

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What Makes the 2025 Tax Year Different?

A Game-Changer: The One, Big, Beautiful Bill

Congress passed the One, Big, Beautiful Bill Act of 2025 (Public Law 119-21), signed into law on July 4, 2025. It delivers two significant victories for businesses looking to invest in equipment:

 

#1 – Section 179 Deduction, Doubled and Made Permanent

 

  • The maximum Section 179 deduction has been raised to $2.5 million, up from about $1.25 million in prior years
  • The phase-out threshold now starts at $4 million of equipment purchases, with a complete phase-out at $6.5 million
  • These limits are permanent and adjusted for inflation going forward

 

#2 – 100% Bonus Depreciation Is Back

 

  • Bonus depreciation had been phasing out (scheduled for 40% in 2025, declining to zero by 2027) but the new law restores 100% bonus depreciation permanently, eliminating the scheduled decline
  • Effective for assets both acquired and placed in service after January 19, 2025

 

Why This Matters for Your Equipment Purchase

Combined, these enhancements offer unprecedented tax flexibility and upfront savings:

 

  • Immediately expense significant equipment investments
  • Maximize tax deductions now, boosting cash flow and business growth
  • Plan with certainty, no more phased-out incentives to worry about

 

Important Reminder

Blanchard Machinery is not a tax advisor. This information reflects publicly available updates under current federal law and is meant to help raise your awareness, not serve as personalized tax advice. For specific guidance tailored to your situation, please consult your company’s CPA, tax preparer, or financial advisor.