What is 1,116 pages long and will impact our lives for a very long time? One Big Beautiful Bill Act (H.R. 1 in the 119th Congress is that long – that’s 1,023 feet. Taller than the Eifel Tower at 984 feet, just a bit shorter than the USS Enterprise at 1,092 feet and even longer than the Titanic at 884 feet or London’s Millenium Bridge. And while it has a fair bit of stuff we may not like, we can look through those ~ 300,000 words, (7,591 is in the entire Constitution with amendments and not even 15,000 in the Marx Brothers “Night at the Opera”), and find stuff[i] that will make anyone happy!
For example, Sec. 70307 adds a new subsection (n) to Section 168 of the Internal Revenue Code allowing a 100% bonus depreciation for qualified production property. And a couple of things caught my eye:
And with due thanks to a long term colleague of mine Bill Bosco[i], this will make your next factory super attractive for synthetic leases that can be balance sheet friendly. Add to that the small business pass thru deduction is up to 23% for some of us and that also saves you some money!
Now on the flip side is the loss of tax credits for EVs such as EV school buses and the elimination of the solar and battery tax credits. Sadly, that loss is debatably not great. However, they will force us to put on our thinking caps and develop new models for residual analysis and monetization; longer term financing; and, focusing on parity, e.g. that 13.05 cents per kWh paid on average in America today.
If you’re a public school, me and my pals in the business of muni leasing can get you to 8.5 cents without a penny of tax credits using tools approved in all Fifty States so there are solutions. And if you add state and local incentives, we can all live within our means. So, I’ll close coming back to “Night At The Opera”.
“You can’t fool me — there ain’t no Sanity Clause!”
[1] “Stuff” is a highly technical term that reminds me I am not here to give anyone any advice on any thing at any time for any reason in any context – From the Old English: ænig – meaning: “any, anyone, anything; some, a certain one” as in the Beowulf rooted in ān meaning “one”[1]https://leasing-101.net/