Why Choose Us?
Honor, Service, Experience.

These 3 words have define National Laundry Equipment, LLC. In short, we provide top quality equipment, parts, service, and consultation for your commercial laundry needs. We serve the coin operated laundry and laundromat community as well as institutions in need of large on-premise laundry system applications.

Click here to request a quote

(615) 885-1115

Service Request

(615) 885-1115

National Laundry Equipment
(615) 885-1115
Contact Us

Supercharge ROI with Section 179 of the Tax Code, Bonus Depreciation, and Other Incentives.

Written by jd

Oct 21, 2025

(615) 885-1115

Buying New Laundry Equipment in 2025: How Section 179, Bonus Depreciation, and Other Incentives Can Super-Charge ROI

For laundromat & OPL (on-premises laundry) owners

Executive summary

  • Section 179 expensing lets you deduct (most or all of) the cost of qualifying equipment—like commercial washers, dryers, water-heaters, point-of-sale systems—in the year you place it in service. For tax years beginning in 2025, the IRS baseline limits are $1,250,000 with a phase-out beginning at $3,130,000 (SUV cap: $31,300). These amounts are in current IRS guidance. IRS+1

  • New 2025 law (the “One Big Beautiful Bill Act,” OBBBA) materially changes expensing: leading national firms report 100% bonus depreciation is restored for property acquired and placed in service after Jan. 19, 2025, with a transitional option to use 40% for certain 2025 property. Several firms and publishers also report a higher Section 179 cap of $2.5M with a $4M phase-out under OBBBA; the IRS is publishing rolling guidance. In practice, that means many laundry projects can be fully expensed in 2025 when structured correctly. (Details & caveats in sections below.) TaxSlayer Pro Support+4BDO+4Grant Thornton+4

  • Beyond 179/bonus, other 2025 savings relevant to laundries include:

    • Accessibility incentives — Section 44 Disabled Access Credit (up to $5,000 credit for eligible small businesses) and Section 190 barrier-removal deduction (up to $15,000 deduction). Great when re-configuring a store layout or adding ramps, accessible doors, payment terminals, etc. U.S. Code+3Legal Information Institute+3IRS+3

    • Energy incentives & grants — Local/utility rebates (e.g., TVA EnergyRight in the Southeast) and USDA REAP grants for eligible rural small businesses to upgrade efficiency (e.g., high-efficiency water heaters, controls). Ohio Farm Bureau+5EnergyRight+5EnergyRight+5

    • Hiring credit — Work Opportunity Tax Credit (WOTC) remains available through Dec. 31, 2025. If you hire from targeted groups, you can reduce taxes by up to $9,600 per eligible hire. IRS

 

1) Section 179 in 2025: What it is and why laundries love it

What it does. Section 179 allows you to expense the cost of qualifying equipment (new or used; “new to you”) in the year you place it in service—rather than depreciating it over 5–7 years. Qualifying real-property improvements to nonresidential buildings (like roofs, HVAC, fire protection, alarm, and security systems) can also be expensed under 179—very relevant for store refreshes or OPL plant upgrades. IRS+1

Baseline 2025 IRS limits (currently published):

  • $1,250,000 maximum Section 179 deduction; phase-out begins at $3,130,000 in total qualifying purchases.

  • SUV cap $31,300 (if you’re buying a heavy SUV for route service, etc.).
    These figures come from the IRS’s 2024 Publication 946 (“What’s New for 2025”). IRS+1

Potentially higher limits under OBBBA (new 2025 law):
Numerous tax publishers and CPA firms report that the OBBBA raised the 179 cap to $2,500,000, with a $4,000,000 phase-out starting threshold (indexing thereafter). The IRS has been issuing rolling law-change updates across 2025; consult your CPA to confirm which set of limits applies to your tax year and circumstances. mobile.unitedrentals.com+3TaxSlayer Pro Support+3AAFCPAs+3

Key 179 constraints you must plan around:

  • Taxable income limit. Section 179 cannot create or increase a net loss; excess carries forward. That makes 179 fantastic for profitable stores and OPLs—but if you’re pre-profit or having a soft year, you may lean more on bonus depreciation (which can create a loss). (See Pub 946 for mechanics.) IRS

  • Placed-in-service date controls. You only get 179 in the year the equipment is installed and ready for use—delivery alone isn’t enough. IRS

What laundry items typically qualify:

  • Hard-mount or soft-mount washers, stack dryers and ironers, laundry management/controls, card/phone pay systems, water-heating systems, water reuse systems, POS and back-office computers, furniture/fixtures, delivery vehicles (with special limits if SUVs). Plus qualifying building improvements (roof/HVAC/security/fire) under 179’s “qualified real property” rules. (Always verify exact assets with your tax pro.) KPMG

2) Bonus depreciation in 2025: Huge change mid-year

What changed. Before 2025, bonus depreciation was phasing down (80% in 2023, 60% in 2024, scheduled for 40% in 2025). OBBBA effectively restores 100% bonus depreciation for qualified property acquired and placed in service after Jan. 19, 2025. For property placed in service in the first tax year ending after Jan. 19, 2025, there’s a transition election to apply the TCJA phasedown rate (40% in 2025; 60% for certain long-production-period property) if that’s better for you. The Tax Adviser+2BDO+2

Why it matters for laundries. Laundry equipment is generally 20-year-or-less MACRS property, so it typically qualifies for bonus. Bonus has no income limit and can create a net operating loss (NOL)—useful if you’re opening a new store, doing a major retool, or running thin margins. The IRS’s bonus depreciation FAQ remains the base reference for qualifying property and “used property/new to you” rules. IRS

Timing strategy. If you acquire and place in service after Jan. 19, 2025, you may get 100% bonus on the basis left after any Section 179 you choose to take. If your equipment was acquired earlier but placed in service in 2025, you may be in the 40% bucket (or elect the transitional rate where applicable). Your vendor paperwork and delivery/installation schedule can materially change your deduction. BDO+1

3) Section 179 vs. Bonus: How to decide (with 2025 numbers)

A simple way to think about it:

  • Use Section 179 to “top-slice” costs up to your 179 cap (and only to the extent of your taxable business income).

  • Use bonus depreciation on the remaining basis (and to create or increase losses when that’s strategic).

To help you visualize, I built a quick scenario table (assumes OBBBA’s reported $2.5M / $4.0M 179 limits and shows 100% vs. 40% bonus outcomes). You can tweak the logic with your CPA for your specific numbers:

👉 2025 Laundry Equipment Tax Planning Scenarios (Sec. 179 + Bonus) — I’ve put a live, editable table in your workspace so you can scan the impact at $200k, $1.25M, $3.5M, and $5M spend levels. Under 100% bonus (post-Jan. 19 acquisitions), everything nets to 100% first-year even on large projects; under 40% bonus, high-dollar projects still deduct a big chunk, but not all. (Assumes sufficient income for 179; bonus shown on residual basis.)

If you don’t see the grid, let me know and I’ll export it to a spreadsheet.

Why this matters in practice:

  • Smaller retools (≤ ~$2.5M total spend): 179 and 100% bonus both get you to full expensing; use 179 first if you want to preserve NOL flexibility (bonus can create NOLs; 179 cannot).

  • Large retools/new builds ($3–5M+): the phase-out math on 179 kicks in, so bonus depreciation (100% on post-Jan. 19 acquisitions) often does the heavy lifting on the leftover basis. BDO

4) Building upgrades & store rehabs that pair well with equipment purchases

When you retool, it’s common to touch the roof, HVAC, panel upgrades, fire/alarm/security systems, lighting, or access improvements (wider aisles, door operators, counter heights). Smart owners stack the following:

  • Section 179 “qualified real property”: immediate expensing for roofs, HVAC, fire protection, alarm, and security systems in nonresidential buildings. Great for laundromats and OPL facilities. IRS+1

  • Qualified Improvement Property (QIP): interior improvements to nonresidential buildings (not enlargements, elevators, or structural framework) generally have 15-year life and qualify for bonus. Useful for buildouts between the four walls. Thomson Reuters Tax

  • Accessibility incentives:

    • Section 44 Disabled Access Credit — 50% of eligible access expenses over $250 up to $10,250 (max $5,000 credit) for qualifying small businesses. Legal Information Institute

    • Section 190 Barrier-Removal Deduction — expense up to $15,000 per year for qualified barrier-removal costs. Can coordinate with the Section 44 credit. IRS+1

5) Energy incentives, grants & rebates that lower cash cost (not just taxes)

  • Utility rebates & regional programs (stackable with 179/bonus):

    • TVA EnergyRight (Southeast) offers Business & Industry incentives and publishes FY25 incentive schedules; projects often include HVAC, lighting/controls, VFDs, and custom efficiency work. Laundries in the TVA footprint (big parts of TN, AL, MS, KY, GA, NC, VA) should check pre-approval rules and funding windows. EnergyRight+2EnergyRight+2

    • ENERGY STAR Rebate Finder & Utility Genius: enter your ZIP to find commercial equipment rebates (including commercial clothes washers). Pre-approval is common for larger checks—plan ahead to document kWh/gal savings. ENERGY STAR+2ENERGY STAR+2

    • ENERGY STAR-certified commercial clothes washers typically use ~45% less water than standard models—a key OPEX lever in coin stores and OPLs—and often qualify for rebates. ENERGY STAR

  • USDA REAP grants (rural small businesses): help fund energy-efficiency and renewables; recent rounds show ongoing IRA-backed awards. If your laundry/OPL is in an eligible rural area, REAP can offset a significant % of capex; consult your state rural development office. Rural Development+1

Rebates reduce your basis for depreciation/179 if they’re a purchase price adjustment—your CPA will book this correctly.

6) Hiring incentives: WOTC still here in 2025

The Work Opportunity Tax Credit is available through Dec. 31, 2025. If you hire eligible employees (e.g., veterans, long-term unemployment recipients), you can earn up to $9,600 per hire (amount varies by target group and hours/wages). Coordination with your payroll/HR provider is essential to capture certifications at hire. IRS

7) Compliance, records, and common pitfalls (laundry-specific)

  • Installation date governs “placed in service.” Keep signed install logs, start-up reports, and invoices by machine/serial number. IRS

  • 179 income limit is per taxable business income (aggregated across your businesses under the rules). If you’re opening a new store with slim income, 179 may carry forward; bonus might be preferable if you want a current-year NOL. IRS

  • State conformity varies. Some states don’t follow federal 179/bonus—plan for state add-backs. (Your CPA’s state-by-state matrix rules here.)

  • Vehicles used for route service: special caps/“listed property” substantiation. Don’t skip mileage or use-logs. IRS

  • Financing: Section 179 generally works with purchases financed by loans/leases where you’re treated as the owner for tax purposes; operating leases don’t qualify. (Check contract/title terms.)

8) Putting it together: a laundromat/OPL decision framework

  1. Define the project — equipment list, building improvements, utility upgrades, accessibility changes.

  2. Map incentives — utility rebates (pre-approval), REAP (if rural), accessibility credits, and then tax (179 + bonus). EnergyRight+2EnergyRight+2

  3. Time your acquisition/installation to maximize 100% bonus (acquired & placed in service after Jan. 19, 2025, per OBBBA) and to fit 179 caps. BDO

  4. Model cash & tax — use the table I shared as a starter; your CPA will layer in income limits, carryforwards, state conformity, and entity structure (S-corp/LLC/partnership) impacts.

  5. Paper trail — keep purchase orders, invoices, funding docs, installation/start-up proofs, rebate approvals, and accessibility cost detail (to support §44/§190).

Sources & further reading (selected)

  • IRS — 2025 inflation adjustments & Section 179 numbers (baseline): Publication 946 (2024): “What’s New for 2025” (shows $1,250,000 cap; $3,130,000 phase-out; SUV $31,300). IRS+1

  • IRS — Bonus depreciation FAQ (Section 168(k); “new to you” rule, qualifying property). IRS

  • Law change (2025) — Practitioner write-ups on OBBBA restoring 100% bonus after Jan. 19, 2025 and the transition election (40%/60%): BDO; Grant Thornton; Thomson Reuters glossary update. BDO+2Grant Thornton+2

  • OBBBA updates from IRS — IRS newsroom updates referencing OBBBA changes (e.g., energy credits FAQs); watch for additional IRS guidance consolidating depreciation/179 changes. IRS

  • Accessibility incentives — Section 44 (Disabled Access Credit) and Section 190 (Barrier Removal). Legal Information Institute+1

  • Utility/efficiency — ENERGY STAR Rebate tools; TVA EnergyRight Business & Industry FY25 materials; ENERGY STAR commercial clothes washers. ENERGY STAR+4ENERGY STAR+4ENERGY STAR+4

  • USDA REAP — grant/loan guarantees for rural small businesses. Rural Development

  • Hiring credit — WOTC available through 12/31/2025 (IRS). IRS

A few closing notes

  • About the differing Section 179 limits you’ll see online: As of the IRS’s latest publication cycle, the baseline 2025 numbers are $1.25M / $3.13M. Multiple reputable tax firms and banks report that OBBBA subsequently increased the 179 cap to $2.5M with a $4.0M phase-out and restored 100% bonus (post-Jan. 19, 2025). Because this year’s law changed mid-year, the safest approach is to have your CPA apply the final IRS guidance to your acquisition and placed-in-service dates. IRS+2BDO+2

  • For National Laundry Equipment clients in the TVA region: don’t forget utility incentives can materially change payback. I linked TVA’s FY25 incentive overview and rules so you can start pre-approval early. EnergyRight+1

Related Posts

Skip to content