Bonus Depreciation for Semi-Trailer Sales

Key Points on Bonus Depreciation Regulation Changes for Semi-Trailer Sales

Permanent 100% Bonus Depreciation Restored:

The OBBBA reinstates 100% bonus depreciation for qualified property acquired and placed in service after January 19, 2025, reversing the scheduled phase-down to 40% for 2025 under the Tax Cuts and Jobs Act (TCJA). Semi-trailers, classified as tangible personal property with a recovery period of 20 years or less, qualify for this full first-year deduction. This allows buyers to immediately expense the entire cost of new or used trailers purchased from River-Roads, improving cash flow and incentivizing purchases over deferrals. This tax incentive is a highlight for fleets looking to maximize tax savings in 2025.

Increased Section 179 Expensing Limits:

The OBBBA raises the Section 179 deduction limit to $2.5 million (from $1.25 million) for 2025, with a phase-out threshold increased to $4 million (from $3.13 million). This applies to semi-trailers used over 50% for business, enabling smaller fleets and owner-operators to deduct the full purchase price of trailers up to this cap. River-Roads can help small to mid-sized businesses by emphasizing how combining Section 179 with 100% bonus depreciation allows immediate expensing of trailer purchases, making buying or leasing from our inventory more financially attractive than ever.

Strategic Advantage for Used Trailer Sales:

The restored 100% bonus depreciation applies to both new and used semi-trailers, provided they are “new to the taxpayer” and not previously used by them. This levels the playing field for our used trailer inventory, as buyers can fully deduct the cost of used dry vans, reefers, or flatbeds in the first year. With freight market challenges pushing fleets toward cost-effective options, River-Roads is emphasizing the tax savings on used trailers to appeal to budget-conscious customers.

Opportunity for Leasing and Rental Promotion:

While leased property does not qualify for the new “qualified production property” depreciation category, semi-trailers leased or rented from River-Roads can still be purchased by lessees to capitalize on 100% bonus depreciation and Section 179. We encourage lessees to consider buying leased trailers before year-end 2025 to take advantage of these deductions, positioning our leasing program as a pathway to ownership with significant tax benefits. (See more.)

Tax Planning Urgency for 2025 Purchases:

For trailers acquired before January 20, 2025, but placed in service after that date, a transitional rule applies, limiting bonus depreciation to 40%. This creates urgency for customers to finalize purchases and place trailers in service after January 19, 2025, to secure the full 100% deduction. River-Roads is highlighting this deadline, urging fleets to act quickly to lock in orders for dry vans, truck bodies, reefers, flatbeds, or chassis, ensuring they maximize tax savings. Our sales team can also offer financing options to facilitate timely purchases.

These bonus depreciation updates enhance the industry trends mentioned in our weekly newsletter, such as subdued trailer demand and freight market challenges, by providing fleets with tax-driven incentives to invest in trailers despite economic pressures. River-Roads is a trusted partner by educating customers on these tax benefits through our newsletter, website, and sales outreach. For example, we highlight how a fleet purchasing new or used trailers can deduct the full amount in 2025, reducing taxable income and offsetting the impact of rising production costs or low freight rates. Together with our full-service maintenance and parts department as a complementary benefit, ensuring trailers remain compliant and operational to maximize business use deductions.

For more details on leveraging these tax changes, we ask customers to consult their tax advisors or visit www.river-roads.com for personalized financing and leasing options tailored to the new depreciation rules.