The Big Beautiful Bill: 100% First-Year Write-Off for Trucks and Equipment

The Short Version

The One Big Beautiful Bill Act (OBBBA), passed in 2025, restored the two most valuable write-offs for small business owners buying big-ticket equipment to their most favorable form — and this time they are permanent, with no annual phase-down.

First: 100% Bonus Depreciation Is Back

In recent years, first-year bonus depreciation had been stepping down from 100% to 80% to 60%. The new law pulls it back to 100%: for qualifying property bought and placed in service after January 19, 2025, you can deduct the entire cost in year one instead of depreciating it over several years.

For a trucker, that means buying a $150,000 new truck could let you expense the full $150,000 this year — provided business use exceeds 50%.

Second: Section 179 Cap Raised to $2.5M

Section 179 is another "full first-year deduction" tool. The new law permanently raises its limit to $2.5 million, with the phase-out threshold lifted to $4 million (inflation-adjusted to roughly $2.56M / $4.09M for 2026 — rely on the IRS figures once published). For nearly every owner-operator and small fleet, that is more than enough room.

179 vs. Bonus — What Is the Difference

• Section 179: You choose which assets to expense and how much — flexible — but it cannot create a business loss (the deduction is capped at your business income).
• Bonus depreciation: Applies automatically by default, has no income cap, and can create a paper loss to offset other income.

In practice, the two are often used together: Section 179 for precise control, bonus depreciation to cover the rest.

Do Not Just Chase the Biggest Deduction

Writing off a large cost all at once feels great, but it is not always the smartest move:

• If your income is low this year and you are in a low bracket, saving the deduction for a higher-income year may save more.
• When you sell the truck, the depreciation you claimed gets taxed back as ordinary income (depreciation recapture).

Before a big purchase, run the numbers with a tax advisor before deciding how much to write off this year.

FAQ

When does 100% bonus depreciation kick in?

For qualifying property bought and placed in service after January 19, 2025, you can deduct the full cost in year one instead of spreading it over several years — and this time the 100% rate is permanent, with no annual phase-down.

How much could I write off on a new truck?

For example, buying a $150,000 new truck could let you expense the full $150,000 in the year of purchase, as long as business use exceeds 50%.

What's the difference between Section 179 and bonus depreciation?

Section 179 lets you choose which assets to expense and how much, which is flexible, but the deduction can't exceed your business income for the year. Bonus depreciation applies automatically with no income cap and can create a paper loss to offset other income. In practice, the two are often used together.

What's the Section 179 limit now?

The new law permanently raises the cap to $2.5 million, with the phase-out threshold lifted to $4 million (inflation-adjusted to roughly $2.56M / $4.09M for 2026 — rely on the IRS figures once published).

Is it always best to write off the maximum this year?

Not necessarily. If your income is low this year and you're in a lower bracket, saving the deduction for a higher-income year could save more overall. Also, when you sell the truck, the depreciation you claimed gets taxed back as ordinary income through depreciation recapture. Run the numbers with a tax advisor before a big purchase.

This article is general tax information and does not constitute personal tax, legal, or accounting advice. Please rely on the latest IRS guidance or consult a qualified professional such as Mingtu for your situation.