Appreciation Depreciation

How did the One Big Beautiful Bill affect bonus depreciation? In a move that has small-business accountants lunging for their calculators, the OBBB reinstated 100% bonus depreciation for 2025–2029.

• This means businesses can immediately deduct the full cost of qualifying equipment, rather than spreading the deductions over 5–7 years.
• For instance, a $500,000 equipment purchase that previously saved $15,000 annually in taxes now saves $105,000–$185,000 immediately.

Why does this matter to brokers?  The elimination of the phase-down schedule creates a five-year urgency window where equipment purchases deliver maximum immediate tax benefits.

• Smart business owners are rushing to finance equipment before this window closes—and smart brokers are rushing to help them.

What are three top takeaways for brokers? Here are three key insights TimePayment thinks every broker should be aware of:

• ROI calculations just flipped: Equipment expected to break even over 3–5 years now shows positive ROI in month one when the new tax savings are factored in—making your financing deals essentially self-funding.
• “Placed in service” timing is critical: Equipment must be operational by December 31 to claim current-year deductions, creating end-of-year financing urgency that benefits brokers who can get deals done quickly.
• Combined with Section 179, immediate deductions are unlimited: Businesses can use Section 179 for the $2.5 million deduction, then bonus depreciation for everything above that, creating infinite immediate tax deduction potential. 

What’s the broker bottom line? The return of 100% bonus depreciation transforms equipment financing from a cash flow decision to a tax arbitrage opportunity.

• Businesses that understand they can save 21%-37% of equipment costs immediately through tax benefits become much easier closes and generate higher transaction volumes.