If you’ve been thinking about buying a new service truck or lube truck for your business, this might be the best time to act and plan for the future. The recently signed One Big Beautiful Bill Act (OBBB) includes a wide range of tax changes that directly benefit small and mid-sized businesses, especially those that invest in machinery and equipment.
In this blog, we break down how the new bill can help Summit customers reduce their tax bills, improve cash flow, and make smart investments in work trucks and equipment that keep jobs moving forward. Whether you’re growing your fleet, upgrading your equipment, or planning ahead for next year’s purchases, these tax incentives can help make it happen.
Bigger Tax Breaks on Equipment Purchases
These powerful fleet expansion tax incentives give you more reasons to upgrade or add new service and lube trucks this year.
Here’s how two significant changes help:
Permanent 100% Bonus Depreciation
Customers can now deduct the entire purchase price of eligible new or used equipment in the same year it goes into service. That includes fully outfitted Summit service and lube trucks.
Why it matters:
- Lowers your tax bill in the same year you buy.
- Encourages you to replace or expand your fleet
- You can finance a truck and still claim the full deduction
- Makes year-end purchases more strategic for tax planning
Expanded Section 179 Expensing
For 2025 and beyond, the Section 179 cap increases to $2.5 million, with phaseouts starting at $4 million. These amounts are adjusted for inflation, and they apply to both new and used equipment.
Why it matters:
- Works well for smaller businesses buying multiple trucks
- Helps contractors, dealers, and field service companies stay on budget
- Gives flexibility if you prefer to plan deductions over time
- Can be used together with bonus depreciation for even greater savings
Tax Savings for Facility Expansions
If your business is growing and you’re considering expanding your shop, truck bays, or regional service center, the OBBB provides another reason to move forward. For the first time in years, commercial buildings and improvements can now be expensed in full, not over decades.
Temporary 100% Expensing of Certain Structures
The new law allows businesses to deduct the full cost of qualifying construction projects in the year they are placed in service. To qualify, the project must begin after January 19, 2025, and be finished by January 1, 2031.
Why it matters:
- You can deduct the full cost of shop or bay expansions right away
- Improves cash flow by avoiding slow, multi-year depreciation schedules
- Makes it easier to invest in larger buildings to support fleet growth
- Contractors and equipment dealers can build new service hubs and ramp up truck capacity at the same time
- Helps you bundle your capital expenditures, from the building to the equipment inside
For Summit customers, this could mean a faster path to expanding your service fleet, hiring more technicians, or storing more equipment. All while keeping more money in your business.
Better Tax Treatment for Financed Equipment
Purchasing equipment, such as service and lube trucks or a lube truck, can be a significant investment. That’s why many customers opt for financing or leasing. The new law makes those financing choices even smarter.
EBITDA-Based Interest Deduction Restored
The One Big Beautiful Bill brings back the rule that lets you deduct more interest on financed equipment. Now, your deduction is based on EBITDA—earnings before interest, taxes, depreciation, and amortization—instead of EBIT, which excludes depreciation and amortization.
How this helps Summit customers:
- You can deduct a bigger chunk of your loan interest when financing trucks
- It’s easier to justify multi-truck purchases, even with large equipment loans
- Makes leasing or low monthly payments more tax-friendly
- Protects your cash flow while expanding your fleet
- Encourages smart growth without getting hit by tax limits on interest costs
If your business is growing and you’re considering financing new equipment, this change puts more tax savings on your side from the very first payment.
More Tax Relief for Small and Mid-Sized Businesses
Many Summit customers run businesses as LLCs, S-Corps, or partnerships. The One Big Beautiful Bill makes a key tax break for these types of companies permanent.
Section 199A Deduction Now Permanent
This rule allows qualifying business owners to deduct up to 20% of their qualified business income. It reduces your taxable income and helps keep more money in your business. The new law also raises the income phase-in thresholds and adds a minimum deduction for owners who actively participate in the business.
How this helps Summit customers:
- Lowers taxable income, freeing up funds to reinvest in work trucks and shop tools
- Supports the long-term success of family-owned companies and independent contractors
- Helps protect profit margins during inflation or market slowdowns
- Encourages reinvestment in high-value assets like fully outfitted service trucks or mobile lube units
- Benefits a wide range of customers across construction, utilities, field service, and equipment repair
- This deduction gives small and growing companies a long-term tax benefit that supports expansion and operational upgrades.
Fleet Expansion Tax Incentives and a Better Business Climate for Long-Term Growth
Beyond tax deductions, the OBBB helps foster a healthier environment for business investment. Summit customers can benefit from this now and in the years to come.
Encourages Capital Investment
By lowering the tax burden on equipment purchases, the bill gives businesses a stronger incentive to invest in new tools, trucks, and service equipment. It’s a win for any company looking to expand operations, upgrade old vehicles, or outfit crews with better gear.
How this helps Summit customers:
- Makes it easier to justify buying new service or lube trucks
- Improves the return on investment for drawers, cranes, and lubrication systems
- Helps businesses stay competitive with modern, high-performing equipment
Improves the Financing Environment
The bill restores more generous interest deductions for financed purchases. That’s good news for customers who lease or finance their trucks, especially when buying more than one unit.
What it means for your bottom line:
- More flexibility to spread out payments while still receiving tax benefits in year one
- Better cash flow while you grow your business or fleet
- Easier planning for large CapEx purchases without added tax pressure
Supports Long-Term Industry Growth
Economic forecasts linked to this legislation project continued GDP growth through at least 2028. Sectors such as construction, energy, utilities, and infrastructure, which are key to Summit, are expected to benefit from increased investment and steady expansion.
Why this matters for Summit customers:
- More jobs and bigger projects mean more need for field service support
- Greater demand for reliable trucks and custom builds
- Stronger long-term planning opportunities for expanding service fleets
Ready to Put These Benefits to Work?
The One Big Beautiful Bill Act provides businesses nationwide with a significant opportunity to invest in their operations, benefiting from improved tax advantages, enhanced cash flow flexibility, and a stronger economic outlook. For Summit customers, that means it’s a great time to upgrade your fleet, expand your service capabilities, or plan for long-term growth with tools that work as hard as you do.
Whether you’re spec’ing out a single service truck or building an entire fleet of lube and crane trucks, these new tax laws make it easier to move forward with confidence.
Here’s how Summit can help:
- Our team will work with you to build the truck that fits your exact needs
- We’ll connect you with trusted financing partners if needed
- We’ll help you understand the equipment that qualifies for full tax expensing
Start planning now. The sooner your equipment is in service, the sooner you can take advantage of the full tax deduction. Reach out to your Summit sales representative or fill out the ‘Build My Truck‘ form to get started today.