In today’s transportation industry, timing matters especially when it comes to capital investments. That’s why fleet operators across the country are taking a closer look at a recent tax update that could significantly reduce their year-end expenses.
The “One Big Beautiful Bill Act” (OBBBA) restores 100% bonus depreciation on qualifying equipment, including new and used motorcoaches placed in service after January 19, 2025. For operators, this means greater financial flexibility, smarter tax planning, and an opportunity to reinvest in the future of their fleets.
ABC Companies supports fleet operators beyond the sale. As a long-time partner to private and public operators, we understand the challenges many are facing in today’s environment.
“For fleet operators, timing large capital investments with tax incentives like bonus depreciation can yield immediate balance sheet benefits. It’s one of the smartest ways to free up capital while upgrading critical assets.”
- Kelly Klein, Chief Financial Officer, ABC Companies
A recent World Bank report highlighted access to financing as a key challenge for private transportation providers.¹ That reflects what we’ve heard firsthand: many customers are ready to upgrade but are navigating capital constraints and cash flow management.
Our goal is to offer a clear, practical path forward. Bonus depreciation is more than a tax perk - it’s a strategic lever to strengthen your business.
These changes allow operators to upgrade now, avoid costly downtime, and better predict budgets without waiting for a future tax cycle.
Imagine you purchase a motorcoach for $635,000. Under the new bonus depreciation rule, that full cost is deductible in the same year. At a 21% corporate tax rate, that’s $133,350 in potential tax savings - funds that can be redirected into hiring, route expansion, maintenance, or technology upgrades.
Operators we work with are using these savings strategically, stretching their dollars further in a tough economy.
“We encourage customers to evaluate both purchase and lease paths under the new tax rules. TRAC leases still qualify and offer added flexibility, especially when vehicle needs shift seasonally or year-to-year.”
- Gregg Goedde, SVP, ABC Financial Services
To qualify for 2025 bonus depreciation, your equipment must be delivered, inspected, and operational by year-end. That means early action matters especially as Q4 inventory tightens and delivery schedules book up.
Here’s what you can do now:
From financing and tax support to nationwide parts and service, ABC Companies helps you make smart, forward-looking decisions.
Whether you’re planning to add a single vehicle or refresh your entire fleet, our team is here to guide you through the process.
“Bonus depreciation is a valuable lever but only when paired with good planning and a clear understanding of your financial goals. That’s where ABC brings unmatched value. We bridge the operational and financial sides of your fleet strategy.”
- Kelly Klein, Chief Financial Officer, ABC Companies
ABC Companies is here to help you make informed, timely decisions that benefit your operation today and tomorrow.
Call your ABC Representative or 800-222-2875
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¹ Source: World Bank – Regional Integration and Transport Infrastructure