Total Equipment Purchases


$4,000,000 $4,500,000 $5,000,000 $5,500,000 $6,000,000 $6,500,000


Source: Bipartisan Policy Center


matters. Equipment and supplies dealers can help clients maximize their deduction by showing them how Section 179 can be incorporated into their buying decisions. That can include encouraging customers to plan purchases earlier in the year instead of waiting until the end, allowing them to get a better idea of how much they stand to save — and potentially unlock room in the budget for more upgrades. When doing this, don’t forget to check in with the client’s accountant early in the sales process. A five-minute call can clarify what qualifies and ensures customers follow through with the deduction filing.


Dealers can also bundle orders in smart ways to maximize deductions. For example, if a customer expects to buy a new combi oven in December and a replacement fryer the following February, bundling both purchases together can create larger tax savings. In this way, the deduction can become another tool in your sales arsenal. The potential for value-added service doesn’t end once the sale is made. By organizing receipts and product information, dealers can function as a resource during tax filing season. Helping your clients leverage these deductions is not only good service — it’s smart selling. When customers realize how much they can write off, that expensive combi oven suddenly looks like a bargain.


38 FEDA News & Views What About Other Tax


Deductions? In July, Congress passed the largest tax reform since 2017 with the One Big Beautiful Bill Act (OBBBA). From a deductions standpoint, the legislation did not reinvent the tax wheel, but it did polish the rims. The bill’s changes to Section 179 are a great example of this polishing. Thanks to the OBBBA: • The Section 179 deduction limit doubled to $2.5 million. • The phase-out threshold rose from $3.13 million to $4 million, with full phase-out at $6.5 million. • These limits are now indexed to inflation in future years. The bill also extended bonus


depreciation and added clarity for energy-efficient upgrades and technology-heavy installations. As a result, if your customer is investing in low energy refrigeration, heating, ventilation, and air conditioning improvements or smart kitchen controls, they may qualify for even more write-offs.


Still, the meat and potatoes of equipment-related tax savings are still Section 179 and bonus depreciation. The OBBBA just brought some extra seasoning, especially for operators focused on sustainability or automation.


Amount Over $4 Million


$0 $500,000


$1,000,000 $1,500,000 $2,000,000 $2,500,000


Section 179


Qualifying Deduction $2,500,000


$2,000,000 $1,500,000 $1,000,000 $500,000 $0


Can Section 179 Support


Additional Purchases? Yes, and this is the part that really matters to dealers. When customers see the amount they can save on taxes, they tend to think bigger. Instead of replacing just a griddle, they might also upgrade their char broiler and steam table. Rather than stretching out a purchase over two years, they go all-in because they know the IRS will reimburse part of the bill. Dealers can also create Section 179 cheat sheets, bundle promos or year- end marketing campaigns that remind customers: “You have still got time to write this off.”


Section 179 is not merely a tax benefit. It’s it a tool for smarter, more confident growth. It enables restaurant owners to invest in the equipment they actually need and helps dealers to be seen as strategic partners. If you are not already talking to your customers about Section 179 deductions, now is the time. If you are, keep going. Add it to your sales emails, your quotes and your end-of- year touchpoints. Be the person who not only gets the order but saves them thousands along the way. At the end of the day, what makes dealers stand out isn’t just the equipment they sell. It’s their ability to help people build restaurants that work, grow and thrive. Who wouldn’t want to be the person who saves the day and the deduction?


About the Author


Brittney McNeal is an account executive at Centra Culinary Finance, a nationwide equipment financing company and a FEDA business services member. Centra has more than 40 years of management experience in the equipment finance industry. McNeal can be reached at bmcneal@centrafunding. com. Learn more at centrafunding.com.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56