By: Daniel Krajewski, EVP, MAZO Capital Solutions
Executive Summary
The "Big, Beautiful Bill" — formally known as H.R. 1 — was signed into law on July 4, 2025. This sweeping tax and economic legislation is poised to have a real impact on equipment financing.
For vendors and dealers in sectors like trucking, trailers, and yellow iron, the bill unlocks incentives that drive demand for financing solutions. At Mazo Capital Solutions, we’re preparing our partners to capitalize on this moment, ensuring they’re positioned to meet the surge with flexible, fast, and strategic financing options.
What the “Big, Beautiful Bill” Means for Equipment Dealers and Finance Partners
H.R. 1 reopens the door to robust capital investment by reviving and expanding key tax incentives. For those selling heavy equipment, trailers, and commercial vehicles — and the lenders supporting them — the implications are clear: business owners are about to get more reasons to buy, and they’ll need reliable financing to move quickly.
“This bill sends a clear signal: now is the time to invest. With expanded depreciation, tax relief, and stronger incentives, equipment buyers will have real reasons to act — and dealers who are ready with financing will be the ones who win.”
— John Pfister, CLFP, CEO, MAZO Capital Solutions
Here’s what to expect:
Under the previous law, bonus depreciation was phasing out, with only 60% available in 2024, 40% in 2025, 20% in 2026, and then eliminated. H.R. 1 reverses that trajectory by reinstating 100% bonus depreciation for qualified property placed in service on or after January 20, 2025, and before January 1, 2030.
It also introduces a special rule for “qualified production property” acquired or begun after January 1, 2025, which, if passed, would be eligible for full bonus depreciation through January 1, 2033, if placed in service before that date.
This means businesses can again fully write off the cost of qualifying new and used equipment in the year it’s placed in service.
Impact: Customers who were hesitating to invest could move to acquire equipment while the full write-off window is open. This creates urgency — and opportunity — for dealers offering seamless financing at the point of sale.
The law doubles the Section 179 cap to $2.5 million, with a phase-out beginning at $4 million — a meaningful increase over current limits.
Impact: Small and mid-sized businesses would immediately deduct more from equipment purchases, making financing even more attractive when paired with upfront tax benefits.
The legislation expands how businesses calculate deductible interest by excluding depreciation and amortization from “adjusted taxable income” through 2029.
Impact: This allows more interest on financed equipment to be deducted, improving the overall financial return of financed purchases and strengthening the case for leveraging credit.
The Qualified Business Income (QBI) deduction gets a long-term lift, permanently rising from 20% to 23% beginning in 2026.
Impact: Many of your customers — from family-owned fleets to independent operators — will see improved cash flow, enabling them to take on equipment financing with greater confidence and less strain.
The law permanently increases the estate and gift tax exemption to $15 million per individual (and $30 million per couple), indexed for inflation, effective from 2026. This move is aimed at supporting the longevity and stability of family-owned and closely held businesses.
Impact: For businesses with multi-generational operations, this provides greater peace of mind and reduces the need to liquidate business assets, such as equipment, to cover estate taxes. This contributes to the overall financial health and continuity of the business, creating a more stable environment for consistent equipment upgrades and financing.
Mazo Capital Solutions is already working with our vendor partners to prepare for the downstream effects of this legislation. Here’s what we’re encouraging:
The “Big, Beautiful Law” is more than a headline — it’s a signal to the market that now is the time to invest. The enacted law is massive, about 887 pages that add trillions in tax benefits over the next decade.
For the equipment finance industry, this is one of the most significant tax reforms and investment windows in recent history. As equipment demand rises, businesses will look for fast, reliable financing to take advantage of these favorable tax conditions. Dealers who are ready to move with them — with flexible, customer-ready finance programs — will come out ahead.
At Mazo Capital Solutions, we’re here to support you every step of the way.
Please note: This analysis is based on the current text of H.R. 1 it is still being debated by Congress. Tax laws are complex and subject to change. Readers should consult with their tax advisors for personalized guidance.
