Big Beautiful Bill Reinstates 100% Bonus Depreciation
Taxes for 2025 in the trucking industry just became a lot more interesting due to a provision in the One Big Beautiful Bill Act.
Details
First, allow us to preface this by saying we are not tax lawyers, so we can only get you about 90% of the way there. For the final 10% of your personal tax journey, we advise you to pay a tax lawyer to cover yourself. When it comes to facing the limitless wrath of the IRS, a team of professional tax experts is likely to be worth every penny.
The Tax Cuts and Jobs Act, enacted on the first day of 2018 during President Trump’s first term, enabled 100% bonus depreciation. What this meant is that companies purchasing a large asset (like a new truck) could depreciate the entire value of the truck outright, lowering the gross income the business faced and ultimately, the tax the company owed to the federal government.
In this previous Act, the bonus depreciation rates were set to steadily decline, from 100% down to eventually reaching zero. Now, with the One Big Beautiful Bill Act, the 100% bonus depreciation is here to stay.
This might sound similar to Section 179, and that is because it is very similar. However, there are some caveats to consider. The biggest one to consider is that while Section 179 limits the amount you can deduct to be so that you cannot report a net loss for the year, bonus depreciation has no such specific limit, meaning that if your trucking company has generated $800,000 in 2025 and you expand by purchasing $1,000,000 in new trucks, you can report a net loss of $200,000.
Conclusion
It is possible that this return to 100% bonus depreciation will have reverberating effects in the trucking industry. Already PACCAR Inc. is planning to ramp up production to generate new trucks due to the added demand as a result of the effective lower price on trucks, especially if a company pays 37% as income tax. “Their ability to deploy that cash or capital asset purchases like trucks is starting to be part of the conversation and is part of our optimism for the latter part of the year.” PACCAR CEO Preston Feight said in a quarterly earnings call.
If you are looking for a new truck or trailer to apply bonus depreciation on, TopMark Funding can certainly help. Read on below for more as to what we can do for you!
Other Trucking Articles You May Like
- California Highway Patrol Lagging on English Enforcement
- Sean Duffy Speaks Before House on Transportation Budge
- House Panel Approves $200 Million in Truck Parking Spending
- Derek Barrs has Senate Confirmation Hearing
- Texas Declares State of Emergency in Regards to Flash Flooding
- ABF Freight Tests Electric Versus Diesel
- The One Big Beautiful Bill’s Implications on Trucking
- DOT’s Pro-Trucker Package
- WYDOT to Plan Superloads Slowing I-80 to a Crawl
ABOUT TOPMARK FUNDING
TopMark Funding is a top-rated semi-truck financing and trailer financing company located in Roseville, CA. We specialize in commercial trucking and heavy equipment. Our mission is to become your long-term financial partner by helping you grow your trucking business and fleet.
We’re not here for the short term, we’re on the long haul with you!
We have financing options for trailers, semi-trucks, commercial trucks, and small businesses. We have great rates, low down payments, and flexible monthly payments regardless of credit history.
Learn more about Trailer Financing.
Fill out the contact form or give us a call at (866) 627-6644. One of our truck financing specialists will contact you as soon as possible to go over your truck lease needs and learn more about you and your business financing goals.
