The Car Wash Owner’s Guide to 100% Bonus Depreciation

March 24, 2025

The latest US budget bill had some exciting news for car wash business owners, the restoration of 100% bonus depreciation. This is huge for car wash owners looking to upgrade their equipment and boost their bottom line. Let’s dive into how you can leverage this opportunity.

What is Bonus Depreciation?

Bonus depreciation allows businesses to deduct a large percentage (now 100%) of the cost of eligible assets in the first year they’re placed in service, rather than depreciating them over time. Think of it as a massive tax break upfront.

Scenario: You own a busy car wash and are considering replacing your outdated rollover.

Without Bonus Depreciation: Let’s say a new, high-efficiency rollover costs $200,000. You would typically depreciate this over its useful life (e.g. several years). This means a smaller deduction each year.

With 100% Bonus Depreciation: Under the new rules, you can deduct the entire $200,000 in the first year. This significantly reduces your taxable income, leading to potentially massive tax savings.

It’s like getting a huge discount on your equipment purchase from the US government. This freed-up cash can be reinvested in other areas of your business, like marketing, employee training, or even another wash bay.

Right now we’re offering even more savings if you upgrade to a new Mark VII Rollover!

Equipment Eligible for the Bonus

While it’s best to consult with your tax advisor, here are some common car wash equipment upgrades that typically qualify for bonus depreciation:

• Car Wash Systems: New tunnel systems, rollovers, and self-serve systems. See Our Car Wash Systems
• Drying Systems: High-powered, efficient dryers. See Our Drying Systems
• Water Recycling Systems: Eco-friendly systems that reduce water consumption. See Our Water Recycling System
• Point-of-Sale (POS) Systems: Modern systems for managing transactions and customer loyalty programs.
• Vacuum Systems: Upgraded vacuums for better customer experiences.

Beyond the Tax Break

Upgrading your car wash isn’t just about saving money on taxes; it’s about investing in the future of your business.

Attract More Customers: Newer, faster, and more efficient equipment means a better car wash experience. Happy customers = repeat business!

Reduce Operating Costs: New energy-efficient systems and water recycling systems can dramatically lower your utility bills.

Key Takeaways

• It’s essential to consult with your tax advisor to determine the specific eligibility requirements and how this applies to your unique situation.
• The new US budget bill restores 100% bonus depreciation, allowing car wash owners to deduct the full cost of eligible equipment in the first year.
• This incentive applies to various upgrades, including automated wash systems, dryers, and water recycling systems.
• Upgrading equipment not only reduces taxes but also attracts more customers and lowers operating costs, so it’s a win-win for your business.

Get started with your upgrade today by contacting our experts!