The Tax Break That Could Supercharge Your Portfolio
A new tax break could let businesses write off big purchases like machines and factories in one go, sparking a spending spree—here’s how investors can spot the winners and cash in.
The tax code’s not exactly a thriller.
It’s more like a 1,000-page snooze fest.
But every now and then, a rule pops up that’s like finding a winning lottery ticket in your couch cushions.
Right now, that rule is 100% bonus depreciation.
This is a plan to let businesses write off the full cost of things like machines, factories, and buildings in one year.
President Trump’s pushing to make it law, maybe even retroactively starting January 20, 2025.
If it happens, it’s a big deal for investors like you.
Let’s unpack it and figure out how to cash in.
What’s the Deal?
Back in 2017, a law called the Tax Cuts and Jobs Act let companies deduct 100% of certain purchases—stuff like equipment or vehicles—right when they bought them.
Here’s how it worked: If a company spends $1 million on a new machine, they could subtract that entire $1 million from their taxes that year.
Many wealthy individuals I know look at it this way …. Instead of writing a $1M check to the government for a tax bill - you might as well spend the $1M on your business.
It makes sense because normally, the purchase is spread it out over years (depreciation).
It was a sweet deal, but it’s been shrinking.
By 2025, the tax break set to drop to 40%.
Meaning a $1M purchase can only be depreciated by 40% (or $400,000) in the first year.
President Trump wants to pump it back to 100%, and his team, including Treasury Secretary Scott Bessent, says it’ll encourage more U.S. factories being built.
Why Investors Should Care
This isn’t just about taxes. It’s about money flowing.
Companies with extra cash will buy more stuff—think tractors, equipment, robots, or even new buildings.
That spending creates winners: the companies buying the gear, the ones selling it, and maybe even the ones renting out the space.
As an investor, you want to own those winners before everyone else catches on.
The Winners
Not every company’s going to hit the jackpot. The big winners will be:
Heavy Spenders: Companies that buy a lot of equipment or buildings, like [REDACTED FOR PREMIUM SUBSCRIBERS].
Suppliers: The folks making the equipment, like [REDACTED FOR PREMIUM SUBSCRIBERS], [REDACTED FOR PREMIUM SUBSCRIBERS], or [REDACTED FOR PREMIUM SUBSCRIBERS], [REDACTED FOR PREMIUM SUBSCRIBERS] and [REDACTED FOR PREMIUM SUBSCRIBERS].
Real Estate: If businesses buy warehouses to get the tax break, real estate trusts like [REDACTED FOR PREMIUM SUBSCRIBERS] could see a boom.
The Risks
Nothing’s guaranteed.
Congress has to approve this, and they’re not exactly speedy.
A similar bill passed the House in 2024 but got stuck in the Senate.
If it doesn’t pass, the tax break stays at 40%, and the excitement fizzles.
Also, the government’s $36 trillion in debt means some people are nervous about giving away more tax money.
And if companies buy everything in 2025, they might slow down later, hurting suppliers.
Your Playbook
Here’s how to make this work for you:
Stay informed: Congress will telegraph its willingness to pass the law. If just a few lawmakers are holding the bill up - deals will be cut and it’s likely to pass.
Find the Spenders: Look for companies spending big on equipment or buildings. Check their “capital expenditures” in financial reports. U.S.-focused firms are best.
Pick Suppliers: Bet on companies like [REDACTED FOR PREMIUM SUBSCRIBERS], [REDACTED FOR PREMIUM SUBSCRIBERS] or [REDACTED FOR PREMIUM SUBSCRIBERS], who’ll sell more if orders spike. Rising order backlogs are a good sign.
Eye Real Estate: Real estate trusts like [REDACTED FOR PREMIUM SUBSCRIBERS] could gain if businesses buy property. Watch leasing trends.
Move Fast: If the law starts January 20, 2025, companies will rush to buy by year-end. Stocks could jump quick.
Be Smart: Focus on companies that’ll grow long-term, not just for one year. Keep checking X and news for updates on Congress.
The Bottom Line
This tax break could be a rocket for certain companies. If it passes, businesses will race to buy equipment and buildings, and the winners will be the ones making or selling that stuff.
Your job is to pick the right stocks before the crowd.
It’s not risk-free—Congress might mess it up, or the economy could stumble—but the potential’s huge.
Start digging, stay alert, and get ready to pounce.
For Equity Empire Premium Members, I’ve provided a list of 15 stocks that went up 23% to 63% in just the first 123 days of the law going into effect. (!!!!)
Got it. Thks, Colin
Yeah , it’s a trick alright . Like the text of corporate tricks !