If you sell, rent, or service heavy equipment, the One Big Beautiful Bill Act (OBBBA) just rewrote a big part of your tax playbook.
This over 800-page piece of sweeping federal legislation touches everything from estate planning to depreciation rules. But what does it mean specifically for your business?
Pinion tax advisors break down the most impactful changes — and what you should do now to get ahead.
1. Bonus Depreciation is Back
One of the biggest wins for equipment dealers: the return of 100% bonus depreciation for qualifying property placed in service after January 19, 2025.
There’s also a temporary provision that allows 100% depreciation for non-residential production property — like agricultural and manufacturing facilities — built between 2025 and 2029.
“While dealers have large capital purchases of their own that this will provide significant savings on, it is even more impactful on the sales side of your business with customers looking to maximize the same savings. Understanding how these provisions work helps you guide them and communicate why timing matters,” says Marc Johnson, lead advisor for Equipment Dealerships at Pinion.
2. Section 179 Deduction Limit Increased
The deduction limit for equipment purchases has been raised to $2.5 million for equipment purchases up to $4 million. This change is permanent and subject to inflation adjustments.
3. QBI Deduction Made Permanent
The 20% Qualified Business Income (QBI) deduction is now a permanent part of the tax code, eliminating its previously scheduled sunset in 2025. The bill also raises the income thresholds for service businesses and introduces a minimum deduction.
4. Immediate R&D Expensing Restored
Businesses can once again fully expense domestic R&D costs immediately, instead of amortizing them over multiple years — a change that could have cash flow benefits for your customer base.
“This may not directly affect dealers, but it’s a win for your customers — and any time you can help free up some of their cash, that’s a win for you too,” adds Johnson.
5. Farmland Capital Gains Installment Option
For those serving the ag sector, there’s a significant change to capital gains treatment on farmland. Sellers of “qualified farmland property” to “qualified farmers” can now pay capital gains taxes from the sale in four equal annual installments.
This could improve liquidity for land buyers — and indirectly support more equipment sales.
6. Permanent Estate Tax Relief
Starting in 2026, the estate tax exemption increases permanently to $15 million for individuals and $30 million for married couples. Importantly, the step-up in basis remains unchanged.
“The estate tax exemption change has major implications for succession planning. If you’re a family-run dealership, you need to take a hard look at your estate documents this year, advises Johnson.
7. Additional Highlights to Know
- SALT Deduction Cap raised temporarily to $40,000 (2025–2029)
- Interest limitations return to EBITDA methodology
- Up to 100% of gain from qualified small business stock sales can now be excluded (if held 5+ years)
- TCJA tax rates are made permanent — no return of the 39.6% bracket
- Standard deduction increases for 2025: $31,500 for married filers, $15,750 for single
- Temporary deductions for tips, overtime, and U.S.-assembled vehicle interest
- Expanded child tax credit and above-the-line charitable deduction of $1,000 reinstated
Complexity Warning
While many of the provisions are taxpayer-friendly, the bill also introduces layers of complexity:
“This tax bill is incredibly complex. There’s a lot to digest, and interpretation is still evolving. W-2s, 1099s, income tax forms — expect changes,” cautions Johnson.
Dealers will need to closely monitor how the IRS implements guidance, especially regarding form updates, reporting obligations, and coordination with state tax laws.
What You Should Do Now
- Review your tax planning strategies for both your business and your clients.
- Educate your customers — especially those in ag and construction — on how the new rules impact their buying power.
- Revisit succession and estate plans to reflect new exemption limits.
- Keep in touch with your accountant or tax advisor as IRS guidance unfolds.
- Align your sales and marketing strategy with these new incentives.
Final Thoughts
The new bill brings opportunity — but only for those who are prepared to act. It’s not just about knowing the new rules. It’s about using them strategically.
Contact a Pinion tax advisor today for help interpreting the changes and impacts.
