The Equipment Leasing & Finance Association (ELFA) celebrates the passage of the One Big Beautiful Bill, marking the permanent enactment of two long-standing priorities for the equipment finance industry: 100% expensing and earnings before interest, taxes, depreciation and amortization (EBITDA)-based interest deductibility.
“These provisions are foundational to a healthy, competitive environment for business investment,” Leigh Lytle, president and CEO of ELFA, said. “Making them permanent provides the certainty our industry needs to continue helping businesses acquire equipment that powers their growth. This is a major victory for our members and the customers they serve and reflects years of persistent, focused advocacy from ELFA and our partners.”
ELFA has been engaged on these issues for many years, consistently making the case to lawmakers that smart, pro-investment tax policy drives economic growth and job creation. The provisions included in the bill will strengthen capital formation across industries and support continued innovation in the U.S. economy.
Permanent 100% expensing allows companies to immediately deduct the full cost of equipment purchases, rather than spreading deductions over years. This boosts capital investment, accelerates innovation and drives productivity — especially in capital-intensive sectors that rely on financing.
Returning to the EBITDA-based interest deduction standard means businesses can deduct interest expenses based on earnings before depreciation and amortization — providing a more generous and accurate measure of financial capacity, especially for capital-intensive industries. This change helps ensure companies can continue to access the financing they need to invest, grow, and compete.
