Instant Tax Benefits from the One Big Beautiful Bill

How does the One Big Beautiful Bill change Section 179 deductions? It’s a game changer, no question. The new tax law just increased Section 179 immediate expensing from $1 million to $2.5 million annually.

What does this mean for brokers? This means your clients can now immediately deduct $1.5 million more in equipment purchases each year—creating massive demand for equipment financing that didn’t exist six months ago.

• Small businesses that were hitting the old $1 million Section 179 cap and delaying equipment purchases now have 2.5x more immediate tax deduction capacity.
• This isn’t just a tax benefit—it’s a fundamental shift in how businesses will approach equipment financing for the remainder of 2025. And TimePayment is ready to help you handle the increased demand.

What else should brokers know?

• The immediate cash flow impact is massive: A $2.5 million equipment purchase now saves $925,000 in taxes immediately (in the 37% bracket)—making financing payments essentially free in year one for many businesses.
• Multi-entity strategies multiply opportunities: Business owners with multiple LLCs can use the $2.5 million Section 179 deduction per entity, creating $7.5+ million in immediate expensing capacity for larger operations. 
• The phase-out threshold is now raised to $4 million: Unlike the old $2.5 million cap, businesses can now purchase $4 million in equipment before losing any Section 179 benefits, dramatically expanding your addressable market.

The broker bottom line: The Section 179 increase creates instant demand from businesses that have been equipment-starved under the old limits.

• Every existing client who hit the previous $1 million cap is now a prospect for an additional $1.5 million in equipment financing—with immediate tax benefits that make the business case irresistible.