TAKE ADVANTAGE OF EXPANDED
U.S. TAX BENEFITS
Now is the perfect time to invest in your business with a new machine tool! The recent passage of the One Big Beautiful Bill Act has expanded tax benefits for manufacturers in the United States, including the highlights below.
SECTION 179 DEDUCTION – IMMEDIATE EXPENSING FOR SMALL TO MID-SIZED BUSINESSES
- Deduct up to $2,500,000 in qualifying equipment purchases placed into service between January 19, 2025, and December 31, 2025.
- Designed to help businesses reduce taxable income by writing off the full cost of eligible equipment in the year it’s placed into service.
- The deduction begins to phase out when total equipment purchases exceed $4,000,000, with thresholds increasing through 2030.
BONUS DEPRECIATION – 100% WRITE-OFF FOR EXCESS COSTS
- After applying Section 179, any remaining equipment cost may qualify for 100% bonus depreciation. There is no dollar cap on the amount of Bonus Depreciation a business can claim each year.
- Applies to new and used equipment placed into service between January 19, 2025, and January 1, 2030.
- Unlike Section 179, bonus depreciation is not limited by taxable income—it can even be carried forward as a net operating loss (NOL) for future tax planning.
R&D TAX CREDIT
- Businesses can now fully deduct R&D expenses in the year they are incurred, reversing the prior requirement to amortize over five years.
To calculate your estimated tax deductions and equipment savings opportunities from U.S. Tax Section 179, visit Section 179.org. Please note that this page might not reflect the latest updates from the One Big Beautiful Bill Act.
We strongly recommend consulting a licensed financial professional for more details regarding ways in which these updates may affect the tax implications for your business.
WE HAVE ELIGIBLE MACHINES IN STOCK
Okuma and our distributors have machines and automation technologies in stock in the U.S. and ready to ship. Automation technologies also qualify for U.S. Tax Section 179 deductions. Service teams are available for installation assistance.
