Maximize Your Savings: 100% Bonus Depreciation Is Now Permanent

We have exciting news for businesses planning to invest in recycling equipment in 2026 and beyond. Recent tax legislation has created a powerful opportunity to reduce your tax burden while upgrading your operations.

What Changed?

On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act (OBBB) into law, representing one of the most significant overhauls of federal tax policy since the 2017 Tax Cuts and Jobs Act. This legislation has major implications for businesses across the recycled materials industry.

Most notably, the law permanently extends 100% bonus depreciation under Section 168(k) for qualified property acquired and placed in service after January 19, 2025. This provision was originally set to phase out over the coming years but has now been made permanent, providing long-term certainty for capital investment planning.

What Does This Mean for Your Business?

Instead of spreading depreciation deductions for capital equipment over several years under Modified Accelerated Cost Recovery System (MACRS) rules, you can now deduct the full amount of your investment in the first year. This significantly improves cash flow and reduces your immediate tax liability.

Qualifying Recycling Equipment

This tax benefit applies to a wide range of recycling equipment, including:

• Balers – Vertical and horizontal models
• Shredders – Industrial and commercial grade
• Conveyors – Material handling systems
• Compactors – Stationary and self-contained units
• Sorting Systems – Optical sorters and screening equipment

Whether you’re looking to expand capacity, modernize outdated equipment, or improve operational efficiency, 100% bonus depreciation makes 2026 an ideal time to invest.

A Simple Example

Let’s say your business purchases $500,000 in qualifying recycling equipment in 2026. With 100% bonus depreciation, you can deduct the entire $500,000 from your taxable income in the first year. For a business in the 21% federal corporate tax bracket, this could translate to an immediate tax savings of $105,000.

Ready to Take Advantage?

At BE Equipment, we’re here to help you find the right recycling solutions for your operation. Our team can work with you to identify equipment that not only improves your productivity but also qualifies for these valuable tax benefits.

Contact us today to discuss your equipment needs and learn how we can support your business growth in 2026.

We look forward to serving you and helping your business thrive.

Sincerely,
The BE Equipment Team

This blog is intended for informational purposes and should not be relied upon as tax, accounting, or legal guidance. Tax regulations are subject to interpretation and change. We encourage you to work with your accounting and legal advisors to evaluate how these provisions may benefit your specific business situation.