The One Big Beautiful Bill Act, signed in July 2025, reshaped several business deductions. Here are the ones most worth reviewing before the year closes.
Equipment and vehicles
Section 179 expensing
For tax years beginning in 2026, businesses can elect to expense up to $2,560,000 of qualifying equipment, with the limit phasing out once total purchases pass $4,090,000. Section 179 can't create a loss; it is limited to business taxable income.
100% bonus depreciation
Bonus depreciation is back at 100% and was made permanent for qualifying property acquired and placed in service after January 19, 2025. Unlike Section 179, it has no dollar cap and can create a net operating loss.
The key word is "placed in service"
Buying equipment isn't enough. It has to be delivered, set up and ready for use by year-end to count for 2026. A truck ordered in December that arrives in January is a 2027 deduction.
Should you take it all now?
Not always. A big write-off in a low-income year can waste deductions that would be worth more later, and it can reduce your qualified business income deduction. Oregon's treatment of depreciation can also differ from federal. Run the numbers first.
Retirement plans
Contributing to a SEP IRA, solo 401(k) or employee plan reduces taxable income and helps you and your team save. Some plans must be set up by December 31 to accept contributions for the year, so don't wait until tax season to start one.
Other year-end moves
- Prepaid expenses. Cash-basis businesses may be able to deduct certain expenses prepaid for up to 12 months.
- Bonuses. Accrual-basis businesses can often deduct year-end bonuses paid within two and a half months after year-end, if set up properly.
- Bad debts. Accrual-basis businesses should review receivables and write off amounts that are truly uncollectible.
- Inventory. Write down obsolete or damaged inventory and count what you have.
- Home office and vehicle records. Get your mileage log and home office measurements in order now.
Don't forget the records
Every deduction needs support. Keep invoices, proof of payment and "placed in service" dates. See how long to keep business records.
This article is general information, current as of September 2026, and is not tax, legal or financial advice for your situation. Tax rules change often. Talk with us before acting on anything here.