OBBB Resource Center

Powerful New Tax Incentives to Invest in Growth

From 100% bonus depreciation to enhanced interest deductions, the changes implemented by the new tax law fundamentally alter the cost of equipment investment through 2029. Paired with creative financing solutions and personalized strategies from LEAF, now may be the most affordable time to move forward on your equipment plans.

The new tax law creates a once-in-a-generation window where equipment purchases deliver immediate financial returns through tax savings.

Key Benefits to Businesses at a Glance

Bonus Depreciation

Immediate 100% equipment deductions (vs. spreading over several years)

100% Bonus Depreciation Returns

The restoration of 100% bonus depreciation means you can deduct the full purchase price of qualifying equipment in the year you buy it, rather than spreading deductions over multiple years.

Key Details

Effective Period

Equipment must be placed in service between January 19, 2025 and December 31, 2029

No Phase-Down

Full 100% deduction is available through the entire period with no phase down

State Conformity

State conformity varies – many don't conform to federal rules

Discover what’s eligible – and what’s not – under the new rules, plus important deadlines and next steps.

See What Qualifies

Enhanced Section 179 Expensing

The Section 179 expensing limit has increased from $1 million to $2.5 million annually, with the phase-out threshold rising to $4 million. This allows much larger immediate equipment deductions for growing businesses.

Strategic Advantages

Immediate Expensing

No depreciation schedules or timing delays

Choose which equipment to apply Section 179 vs. bonus depreciation

Flexible Application

Coordinate with bonus depreciation for maximum benefit

Multi-Year Planning

Each legal entity gets its own $2.5 million limit

Entity Optimization

See what’s new with Section 179, how to use it to your advantage, and guidelines for multi-year planning.

Explore Section 179 Strategies

Enhanced Business Interest Deductions

The restoration of EBITDA-based interest calculations significantly increases deductible interest limits by allowing businesses to add back depreciation, amortization, and depletion to their income calculation.

Impact on Equipment Purchases

Coordinate immediate depreciation with enhanced interest deductions to improve cash flow

Cash Flow Optimization

Enhanced interest deductibility combined with financing makes equipment easier on budgets

Improved Affordability

Support more debt financing for equipment purchases

Higher Leverage Capacity

See how enhanced interest deductions work and get practical examples and timing tips to help plan your next move.

See How It Works

Qualified Production Property (QPP)

Manufacturing facilities and production equipment qualify for 100% first-year depreciation under QPP provisions, creating significant incentives for domestic manufacturing investments.

Qualification Requirements

Construction Timeline

Must begin between January 19, 2025 and January 1, 2029

Activity Requirements

Significant assembly, processing, or production in the U.S.

Completion Deadline

Placed in service by December 31, 2030

Learn how to coordinate QPP with other incentives to make the most of this limited-time window for facility investments.

Plan Your QPP Approach

R&D Expensing Restoration

Research and development costs can now be immediately expensed rather than amortized over five years, with retroactive application for small businesses back to 2022.

Small Business Retroactive Benefits

See what qualifies for R&D expensing, how businesses can apply it, and smart ways to plan for the greatest savings.

Start Your R&D Plan

Small businesses can amend returns for immediate refunds

2022-2024 Opportunity

Previously amortized R&D costs can generate current refunds

Cash Flow Injection

Coordinate with current equipment purchases

Planning Integration

Start Maximizing Your Tax Benefits Today

The new tax law creates a limited-time window for unprecedented equipment financing advantages. With proper planning and the right financing partner, these changes can fundamentally improve your business's cash flow and competitive position.

Next Steps

Calculate Your Savings

Use the interactive tools to model potential benefits

Schedule a Consultation

Speak with a LEAF financing expert about how you can maximize benefits

Develop Your Strategy

Create a multi-year equipment acquisition plan

Execute Immediately

Start capturing benefits with current equipment needs

This limited window of opportunity could transform your business. Let’s explore your best strategy together.

Talk to a Financing Expert

Learn More

Enhanced business interest deductions through EBITDA restoration

Interest Deductions

Learn More

Section 179 limits increased 150% to $2.5 million

Section 179

Learn More

Manufacturing facilities qualify for 100% immediate depreciation

Manufacturing Depreciation

Learn More

R&D costs can be immediately expensed (retroactive to 2022 for small business)

R&D Expensing

A business purchasing $500,000 in equipment can now save $105,000 to $185,000 in taxes immediately, dramatically improving cash flow and financing economics.

R&D Expensing

Interest Deductions

Section 179

Bonus Depreciation

Manufacturing Depreciation

Terms and Conditions: All applications are subject to credit approval. LEAF finances equipment only for business purposes and not for personal, family, or household use. The above is for informational purposes only and is not intended as tax or legal advice. Always check with your accountant or tax advisor to verify your eligibility for any tax deduction.

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