Bonus Depreciation Is Permanent Now

Hi everyone,

February and early March brought real changes to how you run, buy, and grow a business in Indiana. Here is what is worth your time, and what to do about it.

Our second meetup filled American Legion Post 470 in Fishers, with strong turnout and new faces. And OWN had a table at Butler University's sold-out Entrepreneurship Through Acquisition conference: 360-plus attendees and 40 speakers, a clear signal that ownership transitions are heating up in Indiana.

Wednesday, March 25, 3:00 to 6:00 PM, at the VFW in Carmel. Colin King (CPA, CFA) of Profit Mastery leads a practical session on using your financials to drive better calls on pricing, margins, working capital, and cash flow. Spots are limited.

Save the date: our first April Industry Night brings the full ecosystem together, operators, buyers, lenders, brokers, attorneys, and advisors. Details next month.

The One Big Beautiful Bill Act made 100% bonus depreciation permanent for qualifying property placed in service after January 19, 2025. Machinery, equipment, vehicles, office furniture, computers, and used property all qualify for a full first-year deduction. The Section 179 expensing limit also rose to $2.56 million, giving you two overlapping ways to expense major purchases immediately.

Pass-through deduction rises to 23%. The Qualified Business Income deduction jumps from 20% to 23% for pass-throughs in 2026, with a $400 minimum and wider phase-in ranges ($75k single, $150k joint). Every S-corp and LLC sees post-tax cash flow improve. Model it with your CPA.

SBA 504 at 5.72%, or 5.48% for manufacturers. March 504 debentures priced at 5.72% fixed for 25 years, with a fee waiver bringing manufacturers to 5.48%. Sub-6% fixed debt for a quarter century changes deal math. Lock rates if you are financing real estate or equipment. Current rates.

SBA 7(a) gets new base-rate options. As of March 1, lenders can price variable 7(a) loans off SOFR or the 5- or 10-year Treasury, not just Prime. Ask about SOFR pricing before your next term sheet.

New SBA citizenship rule. All owners and required guarantors on 7(a) and 504 loans must now be U.S. citizens or nationals residing in the U.S. Confirm ownership eligibility before signing an LOI.

BOI reporting suspended for domestic companies. Treasury suspended Corporate Transparency Act beneficial-ownership reporting for U.S. domestic entities; it now applies only to foreign entities. Stop domestic BOI prep.

DOL proposes a new contractor test. A proposed rule judges independent-contractor status on control and profit-or-loss opportunity, comment period closing April 28. Audit your 1099 relationships now.

FTC shifts noncompete enforcement. With the blanket ban blocked, the FTC now targets case-by-case, especially noncompetes on lower-wage workers. Have counsel review every active agreement for narrow, legitimate scope.

Pass-through penalty eliminated; state rate drops to 2.95%. SB 259 removed the $500 pass-through reporting penalty, roughly $20 million a year back to Indiana businesses, and the state income tax rate falls to 2.95% for 2026.

Tax amnesty opens July 15. From July 15 to September 15, settle unpaid state tax for periods before January 1, 2023 without interest, penalties, or prosecution. If you inherited liabilities in an acquisition, this cleans the balance sheet.

New ID verification for filings. HEA 1593 requires identity verification to file a Business Entity Report, and lets remote businesses use a commercial mail-receiving agency as a registered address.

Growth signals. IEDC reported 5,700-plus new jobs committed in February. Meta broke ground on a $10 billion data center in Lebanon (4,000 construction jobs at peak), NewCold is expanding past $800 million in Lebanon, Hanjung America chose Huntington for 300 jobs, and ResMed is adding a $30 million distribution center in Greenwood. Position as a local vendor before these sites fully staff. The full list.

Raising prices? Pair it with retention. Nearly half of small businesses plan increases this year. The ones that keep customers call their top accounts personally, reward loyalty in tiers, and give frontline staff the authority to fix problems on the spot.

Aluminum premiums at record highs. Section 232 tariffs pushed Midwest aluminum premiums to $2,182 per tonne, up 67% in six months. Metal-intensive manufacturers should renegotiate supplier terms and update downstream pricing.

Quick hits. Bundled lawn and pest services are now exempt from Indiana sales tax (fix your invoicing). Domestic R&D is immediately deductible again, and many process improvements qualify. Indiana SB 76 tightens E-Verify enforcement, so audit I-9 compliance. New OSHA heat-illness rules apply indoors and out, and HazCom labeling is due May 19. The $2 million business personal property tax exemption was preserved.

Reply with any of these and it helps us build the calendar and keep the rooms high quality:

Reply here or reach out anytime at [email protected]. See you March 25.

Jared Luegers