Tax Changes That Make it Easier to Buy Machines
Authored jointly by Whit Little and Joe Sherman
Accelerated depreciation allows for lower tax payments—keeping more cash in your business when you need it most.
Let’s say you’ve been eyeing that new lathe. Or maybe it’s a conveyor upgrade. Could be a new ERP system. Doesn’t matter. The point is: the government just made it a whole lot easier for manufacturers to stop waiting and start buying.
Thanks to the new One Big Beautiful Bill (OBBB), weird name but serious impact, manufacturers now have access to a much stronger version of Section 179 expensing and 100% bonus depreciation. Translation: buy the equipment, write it off fast, and keep your cash where it belongs: inside your operation.
So, what changed?
A few things. Big things.
- Section 179 is juiced up.
You can now expense up to $2.5 million in qualified equipment and software each year. That cap used to be lower, and now it’s indexed for inflation going forward. So your deduction grows with your business.
- Bonus depreciation is back to 100%.
If your gear doesn’t qualify under 179, or you go over the cap, bonus depreciation kicks in. You can fully write off the cost of machinery, tools, and other tangible assets the year you place them in service. No more stretching it over five or seven years like the old rules. It’s just… done.
Who’s this good for?
Honestly? Just about anyone running a shop. Especially:
- Job shops scaling up to meet new contracts
- OEMs replacing aging machines that can’t keep pace
- Family businesses that want to invest but watch cash like a hawk
- Leaders trying to modernize without blowing up cash flow
And don’t think it’s only for CNC machines or laser cutters. This can include automation equipment, shop floor software, safety systems, you name it, as long as it’s used for production.
Real talk: this is a cash flow play.
You already spend money on equipment. The difference now? You get your tax benefit immediately. Which makes a $150,000 machine feel a whole lot less painful.
If you’ve ever said, “we’ll buy it next year,” now’s the time to rethink that. OBBB changed the math. Especially if you’re already budgeting for 2025 capital improvements.
Last thing: talk to your CPA. These provisions are straightforward, but you still want a pro to help you plan it right. And if you’re already working with us on automation, process improvements, or digital transformation, we’ll help you connect the dots.
Buy smart. Deduct faster. Build stronger.