Section 179 and Maximizing 2025 Tax Incentives: What Truck Owners Should Know
Beginning in 2025, a strengthened federal tax provision gives truck owners and fleet operators a significant advantage. The law restores 100% bonus depreciation, now made permanent, for qualifying equipment—including used trucks—placed in service after January 19, 2025, and on or before the last day of the tax year. Along with expanded Section 179 expensing and improved interest deductibility, this change offers substantial, immediate cash-flow benefits to businesses investing in their fleets.
What’s Changed in 2025
Under the One Big Beautiful Bill Act, signed into law on July 4, 2025, Congress permanently restored 100% bonus depreciation—reversing the scheduled phase-out from prior years. The provision applies to eligible assets placed in service after January 19, 2025, and on or before the end of the taxpayer’s tax year. Unlike the 2023–24 phase-down, this retroactive restoration extends to both new and used personal property, including heavy-duty trucks. (Equipment Finance News)
How It Differs From Prior Years
- 2018–22: 100% bonus depreciation under the Tax Cuts and Jobs Act (TCJA)
- 2023: Reduced to 80%;
- 2024: Further reduced to 60%;
- 2025–onward: Restored to 100% and made permanent, eliminating future phase-downs. (National Tax Group)
