One Big Beautiful Bill May Unlock 100% Equipment Expensing for Auto Glass Shops

Congress passed the One Big Beautiful Bill Act in early July 2025. The legislation included several business tax provisions that could directly affect the financial calculus for shops considering investments in ADAS calibration equipment, technology platforms, and facility upgrades.

The most significant provision for equipment-heavy businesses was the permanent restoration of 100% bonus depreciation for short-lived investments—meaning a shop could deduct the full purchase price of a new calibration system, alignment aligner, or diagnostic tool in the year it was placed in service, rather than depreciating the cost over multiple years. The provision would apply broadly to business equipment, including the types of tools auto glass shops use daily.

For R&D expensing, the bill allowed businesses with gross receipts of $31 million or less to retroactively expense certain R&D costs as far back as the end of 2021—a potential refund opportunity for shops that had invested in developing proprietary calibration procedures or training materials. Larger businesses could also accelerate their remaining R&D deductions over a one- or two-year period.

The bill also temporarily allowed 100% expensing of qualifying building structures if construction began within a specified window—a provision potentially relevant to shops considering building new calibration bays or expanding their facilities to accommodate static calibration targets.

Shop owners should consult with their accountants and tax advisors before making investment decisions based on the bill's provisions. Tax law is complex, and the interaction between bonus depreciation, state tax treatment, and individual shop financial circumstances requires professional guidance. However, the bill's passage appeared to make the financial case for capital investment in calibration infrastructure meaningfully stronger than it had been under prior law.

The timing was notable: Congress provided tax incentives for equipment investment in the same period that State Farm and other insurers were mandating documented calibration outcomes, and as AGSC was formalizing ADAS requirements in its professional standards. Multiple forces were converging to reward shops that invested in calibration capability.