How Bus Companies Can Leverage 100% Bonus Depreciation on Motorcoaches in 2025
If you’re running a motorcoach company, there’s some good news tucked into the latest “big beautiful” federal tax package that directly impacts your bottom line. The bill continues to allow 100% bonus depreciation on new and used motorcoaches placed in service this year.
That means if you purchase a coach in 2025 — even a pre-owned unit — you can depreciate 100% of the cost in year one, instead of spreading it out over the standard 7–10 year depreciation schedule.
What This Means for Your Business
- Immediate Tax Savings: Instead of slowly writing off a $500,000 coach over a decade, you can expense the full $500,000 this year. That could wipe out a huge portion of taxable income.
- Cash Flow Advantage: Reducing your tax bill today frees up capital to reinvest in fleet upgrades, staffing, or expansion.
- Strategic Year-End Planning: If your company has had a strong year in 2025, bonus depreciation could help you rein in your tax liability while positioning your business for growth in 2026.
Why Now Is the Time
Many operators held back during the past few years due to uncertainty, higher interest rates, or supply chain delays. But with bonus depreciation still at 100% for 2025, this is a rare window to:
- Upgrade aging fleet vehicles.
- Expand capacity without waiting years for tax benefits.
- Lock in immediate deductions before the current provisions phase down in future years.
Example in Action
Let’s say your company earned $750,000 in taxable income this year.
- You purchase a 2019 MCI J4500 for $400,000.
- With 100% bonus depreciation, you deduct the entire $400,000 in 2025.
- Your taxable income drops to $350,000, significantly reducing your tax burden.
Instead of cutting a huge check to the IRS, you’ve invested in your business — and your passengers will enjoy the benefits of a newer, more reliable coach.
Key Things to Remember
- Applies to new and used motorcoaches, as long as they’re placed in service this year.
- Works alongside Section 179 deductions, giving you multiple ways to manage tax planning.
- Always confirm with your CFO or tax professional to make sure you’re applying the credit correctly for your specific business.
How BuyCoachBus.com Can Help
At BuyCoachBus.com, we have a strong inventory of pre-owned and late-model motorcoaches ready for immediate delivery. That means you can still purchase, place a coach into service, and take advantage of this year’s 100% bonus depreciation benefit.
If your business did well in 2025, don’t just let Uncle Sam take the biggest share — invest that success into your fleet. The tax code is giving you the perfect reason to expand and modernize now.
Call us today to review available inventory and see how a smart purchase before year-end can help you drive down taxes and drive up profits.
