Landscape Architect Articles

Full Equipment Deductibility01-31-23 | 10

Full Equipment Deductibility
Big Beautiful Bill Act
by Rebecca Radtke, LCMP

The One Big Beautiful has been applauded by associations like the Irrigation Association (IA) for elements of the tax provisions, such as the full equipment deductibility.

Section 179 was expanded when the bill was signed into law on July 4, 2025. These provisions offer tax benefits that directly incentivize the irrigation industry to invest in new equipment as the tax code allows for a full deduction on qualifying software and equipment. Section 179 limits for bonus depreciation for qualified property ?EUR" which can be classified as a property that is used for more than 50% business purposes, tangible property like machinery, equipment, computers and off-the-shelf software ?EUR" was increased to $2.5 million while the phase-out threshold was pushed to $4 million starting this tax year according to BipartisanPolicy.org. For example, a business that purchases $5 million in eligible equipment can now apply this to deduct $1.5 million ?EUR" allowing for a total deduction of $5 million.

Further, businesses can see improved cash flow and reduced cost, which is believed to incentivize businesses such as irrigation for greater tax savings and cutting-edge technology.