Big 2025 Tax Breaks Are Back — What It Means for CNC Equipment Buyers
Our financing partner, Machinery Finance Resources (MFR), recently shared an important update about the One Big Beautiful Bill Act (OBBBA) — and it's big news for manufacturers planning capital purchases in 2025.
If you're considering CNC routers, edgebanders, or other shop equipment, this is the time to act.
Key Benefits at a Glance:
- 100% Bonus Depreciation Restored – Deduct the full purchase price of new or used equipment placed in service after Jan 19, 2025.
- Section 179 Limit Doubled – Now $2.5 million, with a phase-out starting at $4 million.
- Immediate R&D Expensing – Write off prototyping, tooling, and process upgrades right away.
- Owner Cash Flow Boost – Individual tax cuts permanently extended for pass-through businesses.
Why It Matters for Woodworkers & Fabricators:
Whether you're upgrading to automated CNCs or adding capacity for growth, these tax benefits could result in
five- or six-figure savings. For example, a $750,000 equipment investment might generate up to
$165,000 in tax savings (based on a 22% tax rate).
Next Steps:
- Time your 2025 purchases to align with tax planning.
- Combine Section 179 + Bonus Depreciation for maximum benefit.
- Talk to DES about eligible CNC equipment — and ask how MFR can help finance your purchase with minimal upfront capital.
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Read the Full Tax Incentive Breakdown from MFR >
Includes examples, R&D tips, and a one-page savings calculator.
