The One Big Beautiful Bill Act: Dealership Impacts
By Joel C. Kreider, CPA and Garrett Murphy, CPA
The new One Big Beautiful Bill Act (OBBBA) introduces sweeping tax changes that affect auto dealerships, their owners, employees, and even customers—touching everything from equipment purchases and payroll to EV credits and green energy incentives.
To help you navigate what’s new, we’ve created two quick-reference tables—one focused on impacts to your dealership’s operations and another covering changes that affect owners, employees, and customers.
Click on the plus signs below to expand the tables or, to download the printer-friendly PDF, click here.
Impacts on Your Dealership
| 48E 30% ITC (Investment Tax Credit) Credit | Clean electricity investment credit for qualified property (including solar/wind) is available at a 30% rate for certain facilities and energy storage technology, subject to prevailing wage, apprenticeship, and domestic content requirements. | Credit is not available for solar/wind facilities placed in service after Dec. 31, 2027. Additional percentage points for energy communities and low-income projects. |
| 45W Commercial Clean Vehicle Credit | Credit for qualified commercial clean vehicles: up to 15% of basis (30% if not powered by gasoline/diesel), capped at $7,500 (<14,000 lbs) or $40,000 (≥14,000 lbs). | No credit for vehicles acquired after Sept. 30, 2025 (accelerated sunset). |
| Solar/Wind Energy No Longer Qualifying for 5-Year MACRS | Accelerated depreciation for energy property (including solar/wind) is terminated for property construction beginning after Dec. 31, 2024. | No 5-year MACRS for new solar/wind after this date. |
| Section 179 | Expensing limit increased to $2.5 million, phaseout at $4 million, both indexed for inflation. | Phaseout applies for investments above $4 million. |
| Alternative Refueling Credit | Credit for alternative fuel vehicle refueling property is terminated for property placed in service after June 30, 2026. | No credit after this date. |
| Elimination of Deduction for Employer Provided Meals Retained with Exceptions | For tax years after 2025, employer-provided meals—including break room snacks, meals for the convenience of the employer, and meals at employer-operated eating facilities—are completely nondeductible. Business meals with customers/clients remain 50% deductible. Social/recreational employee events (e.g., holiday parties, company picnics) remain 100% deductible if primarily for non-highly compensated employees and not discriminatory. | 0% deduction for employer-provided meals (except as noted); 50% deduction for business meals with customers/clients; 100% deduction for social/recreational employee events if not discriminatory. |
| One-Percent Floor Required for Corporate Charitable Contribution Deduction | Only contributions exceeding 1% of taxable income are deductible (up to 10%), with carryforward rules. | 1% floor applies; 10% overall cap remains. |
| Section 199A (Qualified Business Income Deduction) | Phase-in threshold increased to $75,000 ($150,000 joint); $400 minimum deduction for active business income, with inflation adjustments. | Deduction phases out above threshold; minimum applies only to active business income. |
| Bonus Depreciation | 100% expensing for qualified business property made permanent, with transitional options for reduced percentages in 2025. | No scheduled phaseout; permanent. |
| Section 163(j) (Business Interest Limitation) | EBITDA add-back is restored permanently, increasing allowable business interest deductions. Business interest limitation applies before capitalization, and disallowed interest is not subject to future capitalization. | Applies to all businesses subject to §163(j); coordination rules clarified. |
Impacts on Owners, Employees, and Customers
| Estate Tax | Exemption permanently increased to $15 million (indexed), effective for estates/gifts after 2025. | Exemption indexed for inflation. |
| Overtime Tax Exemption | Deduction for up to $12,500 ($25,000 joint) in qualified overtime pay per year (phased out at higher incomes) for 2025-2028. | Phased out at higher incomes; temporary (2025-2028). |
| Auto Interest Deductibility | Deduction of up to $10,000/year for interest on loans for new U.S.-assembled passenger vehicles (2025-2028), phased out at higher incomes. | Phased out at higher incomes; temporary (2025-2028). |
| Expiration of EV Tax Credits | Credit for new clean vehicles (IRC §30D) and used clean vehicles (IRC §25E) terminated for vehicles acquired after Sept. 30, 2025. | No credit after this date. |
| SALT Deduction Cap Increase | Cap increased to $40,000 ($20,000 MFS) for 2025, indexed for inflation, with a phase-down for high incomes, reverting to $10,000 after 2029. | Cap phases down for high incomes; reverts to $10,000 after 2029. |
Why it Matters:
These updates influence both day-to-day operations and long-term planning. Whether you’re running a dealership or advising one, understanding the changes is key to staying ahead.
Final Note:
The tax changes listed above are among the most relevant to dealership operations; however, the bill is broad in scope and may continue to evolve as interpretations and guidance are released.
Remember, it’s important to consult your Boyer & Ritter Dealership Team to assess how these changes could impact your dealership enterprise.