The recently-passed One Big Beautiful Bill Act (OBBBA) is set to reshape the construction and infrastructure landscape — and that’s good news for the foundation drilling industry. At International Drilling Equipment, we view this landmark legislation as an unprecedented opportunity for contractors to grow, invest, and build stronger teams.
Here are some of the ways the OBBBA benefits contractors in our sector:
Tax Incentives for Equipment Investment
One of the most impactful aspects of the OBBBA is how it makes capital investment in equipment more accessible and financially rewarding:
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100% Bonus Depreciation Restored
Businesses can now fully deduct the cost of qualifying property — such as drilling rigs, excavation equipment, and tooling — in the year it is placed in service. This applies to property acquired after January 19, 2025, and placed in service before January 1, 2030.
Immediate expensing improves cash flow and reduces tax liability, freeing up capital for further growth. -
Expanded Section 179 Deduction
The maximum Section 179 deduction has been increased to $2.5 million, with a phase-out threshold beginning at $4 million.
This allows contractors to expense the full cost of qualifying equipment purchases, providing much-needed flexibility in managing capital expenditures.
At IDE, we’re ready to help contractors take advantage of these provisions with high-performance rigs and tools that qualify under the new rules.
Infrastructure Investments and Industry Growth
The OBBBA also allocates substantial funding to infrastructure development, with a focus on transportation, energy, and climate-resilient construction.
For deep foundation contractors, this translates to a surge in market demand, more bidding opportunities, and a steady pipeline of projects requiring quality foundation systems. With the right preparation and equipment, contractors can seize these opportunities and position themselves for sustained success.
Employee Benefits and Workforce Incentives
The bill also recognizes the importance of the workforce by making it more rewarding for skilled employees to contribute:
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Overtime Pay Tax Deduction
Beginning in 2025 and through 2028, employees can deduct up to $12,500 (or $25,000 for joint filers) of overtime pay from their federal taxable income each year.
This provision makes overtime work more financially attractive, helping contractors incentivize productivity and attract workers to meet higher project demands.
Combined with continued federal support for training programs and apprenticeships, the OBBBA helps lay the groundwork for a stronger, more capable workforce in the foundation drilling industry.
A Bright Future for Contractors
The One Big Beautiful Bill Act gives foundation drilling contractors the tools and incentives to invest confidently, grow strategically, and compete for the wave of projects ahead. At International Drilling Equipment, we’re committed to helping our customers make the most of this moment with the right rigs, tooling, expertise, and service.
If you’re ready to discuss how IDE can support your business in capitalizing on these opportunities, reach out to our team today. Together, we can help you build a stronger future — from the ground up.
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