Tax Centric Lighting Discusses OB3: One Big Beautiful Bill

OB3

How will OB3 affect your business?

The OB3 (One Big Beautiful Bill) is here, and it has reshaped several of the tax deductions for LED lighting upgrades. To take full advantage of OB3 to close lighting jobs, we are here to help you capitalize on the new rules…

1. Bonus Depreciation: 100% Is Back Permanently

  • 100% Bonus Reinstated for qualified assets (including LED lighting upgrades) placed-in-service on/after 1/20/2025
  • Projects completed between January 1, 2025 and January 19, 2025 will be subject to the old rules which allow for 40% depreciation
  • QIP (Qualified Improvement Property) rules remain the same for 100% deduction

2. Section 179 Expensing Limits Significantly Expanded

  • Deduction limit: Increased to $2.5M
  • Phase-out threshold: Increased to $4.0M

3. Section 179D (EPAct) To Be Phased Out

  • Will apply for projects in process before June 2026
  • The qualifying amount for deductions is unchanged

The combination of tax deductions and custom financing are powerful tools in closing LED lighting upgrades.

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All content is courtesy of Tax Centric Lighting.

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