New Tax Breaks vs. New Costs: What Work Truck Owners Need to Know

The Big, Beautiful Bill that was passed by congress in July and signed into law on the 4^th of July has the potential to have some big, maybe beautiful, impact on work truck owners and fleets. There are several provisions that encourage investment and offer tax savings – especially for US-manufactured equipment. However, there are some sectors, most notably clean and renewable energy, that may experience slowdowns due to the discontinuation of incentives. This could hamper investment in those projects.

When adding the potential effects of US tariff policy, the next few years could bring some uncertainty. Increased costs for imported raw materials, components, and finished goods will likely result in higher costs for manufacturers that may slow some purchasing decisions.

What are the key provisions of the bill that you should be aware of, and how might the tariffs affect those decisions? Here are 5 key takeaways from both the Big Beautiful Bill and Tariff Policy:

1. Equipment purchases benefit from 100% bonus depreciation: The renewal of Section 179 provision from the 2017 Tax Cuts and Jobs Act, allows businesses to immediately deduct the cost of qualifying property and equipment up to the qualifying limit. That includes mobile cranes and small lifting gear, allowing immediate write-offs, stronger ROI, and greater predictability on new equipment purchases. In 2025, these deductions are capped at $2.5 million and begin to phase out dollar for dollar when total eligible purchases exceed $4 million. The deduction fully phases out once total purchases reach $6.5 million. To calculate the potential tax savings on 2025 purchases of qualified assets, visit our 2025 Section 179 Deduction Calculator. (sbcacomponents.com)
2. Auto-Loan Interest Deduction: One of the most notable provisions of the bill for fleet owners is a tax deduction for auto loan interest. Under the new legislation, from 2025–2028, fleets can deduct up to $10,000/year in interest on loans for new, U.S.-assembled vehicles under 14,000 lbs. GVWR. This could influence purchase strategies toward eligible domestic work trucks.(Congress.gov+8Work Truck Online+8Construction Dive+8)
3. Permanent pass-through deduction (Sec. 199A): An immediate extension of the 20% pass-through deduction for eligible business income helps especially small and mid size contracting firms replace aging equipment and invest in safer, more efficient options. (Work Truck Online+4sbcacomponents.com+4Construction Dive+4)
4. Surge in construction starts: Industry groups expect a surge in construction starts, driven by infrastructure spending and tax benefits. “These tax enhancements should help greenlight shovels in the ground throughout the country. Any newly built nonresidential facility whose primary use is to manufacture, process or refine tangible goods can take the 100% deduction.” Said John Robbins of Turner and Townsend. However, labor shortages, exacerbated by immigration reforms, and supply-chain strains due to tariffs, may push costs higher and cause delays. (Construction Dive)
5. Renewable Energy Sector Impact: Renewable energy incentives like tax credits under the Inflation Reduction Act have been repealed under the new law. That may dampen clean-energy development, particularly solar, wind, and EV infrastructure. However, some other renewable sources are largely unaffected. Biofuels, geothermal, nuclear and others have not been impacted. These technologies continue to qualify for clean tax credits, with some limits. Overall, many renewable projects may stall or be scaled back. (bdlaw.com/publications)

The administration’s approach to tariffs seems to be ever-changing. This obviously causes some uncertainty when considering equipment purchases and long-term procurement relationships. Whatever the actual numbers are, you can be certain that the tariffs will have some impact on your business. Here are 5 key takeaways from the Tariff Policy:

1. 25% tariffs on imported work vehicles. This policy, when applied, will affect many vehicle types, including utility trucks, trailers, and specialty units. While some countries have received an extension, and some deals have been made with other countries, the new tariffs will raise acquisition costs, and/or increase purchase or lease expense for imported and parts-built vehicles. (com+6contractorshotline.com+6usedmotorgrader.com+6)
2. Shift to domestic procurement: To mitigate tariffs, many fleets are looking to shift to U.S.-assembled models, though availability could not always meet demand—especially for specialized utility trucks. Additionally, component costs associated with many of these vehicles could still be impacted by tariffs.
3. Steel and aluminum tariffs doubled to 50% as of June 4, 2025, driving up structural material prices (e.g. beams, siding, hardware). The tariff applies to nearly all steel entering the US market. Currently, nearly a quarter of all steel used in the US is imported. Ultimately, these tariffs will lead to higher costs for American businesses and consumers and fewer exports of finished goods for American companies, due to reciprocal tariffs. (US Chamber of Commerce)
4. Unpredictability: Variability in tariffs lead to project delays, cost overruns, and bids being delayed or canceled. Mobility slowed as uncertainty grew around material availability and pricing. According to CMIC Global, “Tariffs on steel and aluminum imports, especially from Asian and Eastern European producers, have elevated base prices for structural framing, beams, rebar, and facade systems. While some domestic mills may benefit in the short term, domestic capacity remains limited in many regions. This leaves contractors exposed to premiums that ripple through multiple trades.”
5. Surge in the rental market: As purchased equipment becomes more costly, rental equipment providers may become more in-demand, causing price hikes and fewer available listings. United Rentals, the world’s largest rental company, expects that economic uncertainty could fuel increased demand. com

Actionable Takeaways

• Fleet managers should evaluate purchasing plans now through 2028 to maximize interest deductions on U.S.-assembled vehicles.
• Contractors and crane operators should consider accelerating capital investments before bonus depreciation sunset.
• Be prepared for some cost increases and price volatility due to tariffs