Key Tax Changes for the Leasing Industry

ECS Financial's Nancy Geary explores the effects of the latest tax reform in her feature article for NEFA Newsline, the official magazine of the National Equipment Finance Association.

The Tax Cuts and Jobs Act (“Act”, P.L. 115-97), enacted on December 22, 2017, made some major changes to the tax code. While it would be impossible to address them all here, I would like to highlight a few major changes that affect the leasing industry.

First and foremost, of course, are changes to depreciation—both bonus depreciation and section 179 expensing. But we will also look at corporate tax-rate changes and deductions available to individuals holding interest in passthrough entities; new restrictions on net operating loss deductions; the repeal of Alternative Minimum Tax (AMT); and interest expense deduction limitations.