In 2025, small businesses in construction, trucking, HVAC, manufacturing, and healthcare can unlock major tax savings through bonus depreciation. Thanks to the “Big Beautiful Bill,” you may deduct the full cost of eligible equipment in the year it’s purchased. This immediate expense puts more money back into your business when you need it most.
What is Bonus Depreciation and Immediate Expensing?
Bonus depreciation lets businesses deduct up to 100% of eligible equipment costs in the year it’s placed in service. Known as an immediate expense, this reduces taxable income upfront rather than over time.
Section 179 and Bonus Depreciation Explained
While Section 179 has long helped small businesses write off equipment costs, bonus depreciation often covers a broader range of assets, including used equipment. Here’s how they compare:
- Section 179 is limited to business income and subject to annual caps.
- Bonus Depreciation has no income limit and applies beyond those caps.
Why 2025 is the Year to Act
The “Big Beautiful Bill” reinstates 100% bonus depreciation through the end of 2025. After that, the rate drops. That creates a clear incentive for small business owners to invest in equipment before the end of this calendar year.
Industries That Stand to Benefit
Some of the biggest winners include:
- Construction companies purchasing new excavators or site equipment
- HVAC and electrical businesses upgrading vehicles or tools
- Medical practices investing in diagnostic technology
- Manufacturers updating production lines
- Truckers buying or leasing new trucks or trailers
If your operations depend on equipment, this is the time to upgrade and deduct.
Using Equipment Financing to Maximize Tax Benefits
One of the most valuable aspects of bonus depreciation is that you do not need to pay cash to claim the deduction. If you finance equipment or use a working capital advance, you can still deduct the full purchase price in 2025.
Example:
- You finance a $70,000 piece of equipment through Dynamic Capital
- You deduct the entire $70,000 this year
- You make affordable payments over time while enjoying tax savings today
This approach helps preserve your cash flow while reducing your tax bill, making it easier to reinvest in other parts of your business.
How to Grow Your Business with Bonus Depreciation
Bonus depreciation is more than a tax perk. It is a strategy to reinvest in your operations without delay. Here’s how it can impact your growth:
- Reduce your taxable income
- Free up cash for marketing, hiring, or expansion
- Upgrade outdated equipment
- Become more competitive in your industry
Checklist: Is Your Business Ready?
- You’ve been in business for at least 1 year
- Your monthly revenue is over $20,000
- You need new or used equipment this year
- You want to reduce your tax burden in 2025
If you checked most of these, your business is likely ready to benefit.
Common Questions About Bonus Depreciation for Small Businesses
- Can I deduct the full cost if I finance the equipment?
Yes. You can deduct the full amount in the year the equipment is placed in service, even if it is financed. - Does this apply to used equipment?
Yes. Bonus depreciation now includes eligible used equipment. - Is there a deadline?
Yes. The equipment must be placed in service by December 31, 2025. - Can I combine Section 179 and bonus depreciation?
Yes. Many businesses use both. Section 179 is applied first, then bonus depreciation on the remaining cost.
Take Advantage Before the Window Closes
Bonus depreciation for small businesses in 2025 is a unique chance to reduce taxes and reinvest in your future. The window to take full advantage will close at the end of the year. At Dynamic Capital, we help entrepreneurs like you secure the equipment and capital needed to grow without the red tape of traditional banks.
If you are in construction, HVAC, trucking, healthcare, or manufacturing, and need a funding partner that works on your schedule, we are ready to help.
Prequalify online in under two minutes and see how you can unlock tax savings and long-term growth today.