Signed into law on July 4, 2025, the OBBB permanently extends many 2017 TCJA tax cuts (higher standard deduction, SALT cap increases), enhances business deductions, and introduces sweeping changes across tax, healthcare, energy, and immigration*.

 

Key highlights:

  • Permanent 100% Bonus Depreciation for qualified tangible property (20-year or less) acquired after January 19, 2025*.

  • Temporary QPP (Qualified Production Property) bonus depreciation for U.S. production facilities placed in service before 2031*.

  • Full Section 163(j) interest deduction restoration (30% EBITDA-based cap) Center for Agricultural Law and Taxation.

  • Section 199A (20% QBI deduction) is now permanent*.

  • Increased SALT deduction cap to $40k (2025), indexing through 2029*.

Other business-friendly provisions include R&D expensing, enhanced semiconductor investment credits, and restorative changes to interest deductibility.

 

Bonus Depreciation — Why It Matters

 

🔹 What is it?

100% bonus depreciation allows businesses to immediately deduct the full cost of qualifying purchases—machinery, equipment, and certain improvements—in the year the asset is placed in service. Before OBBB, this deduction was phasing down (40% in 2025 → 0% by 2027) .

 

🔹 What’s new under OBBB?

  • Assets acquired and placed in service after January 19, 2025, are now eligible for full 100% depreciation*.

  • Applies to both new and used equipment (not from related parties) Project Finance Law.

  • New bonus for qualified production property (factories, manufacturing buildings) through 2030—subject to conditions BIPC.

  • Optional phased election (40%/60%) for property in the first tax year ending after Jan 19, 2025*.

  • Immediate R&D expensing restored.

 

Why It’s a Game Changer

 

For Vendors:

  • Accelerate sales by demonstrating customers can deduct the full purchase price immediately.

  • Simplify ROI discussions—immediate deduction reduces effective cost, boosting affordability.

  • Differentiate your offer by pairing the deal with expert financing from FPG.

For Equipment Buyers:

  • Maximize tax savings and keep cash flow liquid—deduct now, pay over time.

  • Strengthen growth strategies via new/more efficient equipment.

  • Plan multi-asset purchases with strategic budgeting alongside financing and expected tax relief.

How FPG Helps You Capitalize

 

FPG isn’t just a lender—we’re your strategic partner in leveraging OBBB effectively:

 

  • ✅ Aligned financing structures: Design payment plans that unlock immediate deduction while preserving working capital.

  • ✅ Speed + expertise: Funding decisions in 2–4 hours; clear guidance on eligibility (new vs. used, QPP vs. other).

  • ✅ Funding flexibility: Direct lender with a network of 25+ strategic partners.

  • ✅ Sales enablement: Vendor training, marketing insights, plain-language tools that bring OBBB to life for prospects.

  • ✅ Tax-savvy planning: Collaborations with tax professionals to optimize decisions—e.g., phased elections or grouping assets.

 

Action Plan — Step by Step

 

For Vendors

For Buyers

Educate sales teams on bonus depreciation benefits.

Identify immediate and near-term capex needs.

Bundle financing + tax benefit into your pitch.

Calculate cash flow impact: tax savings vs. financing costs.

Co-market with FPG around OBBB.

Engage FPG early—secure terms before placement in service.

Train marketing teams to highlight “deduct now, pay later.”

Work with FPG to structure & file properly (qualify & elect).

 

Key Considerations

 

  • Assets qualify if ✳️ purchased post-Jan 19, 2025, and ✳️ placed in service within the tax year.

  • Used assets qualify, but not from related parties.

  • QPP bonus is temporary; planning matters for factory investment.

  • Elections and documentation are critical—FPG ensures every transaction is set up correctly.

Final Take

 

The OBBB presents a once-in-a-cycle opportunity to convert tax policy into real-world business advantage. Vendors can accelerate deals, buyers can scale up affordably, and FPG is here to guide both with fast, frictionless and structurally smart financing.

 

📞 Contact FPG: (603) 696‑7076
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