Why 2025 Is a Financially Strategic Year to Purchase Waterjet or Plasma Cutting Table

For manufacturers and fabricators planning capital equipment purchases, 2025 presents a favorable environment for acquiring machinery at a reduced net cost. The One Big Beautiful Bill Act (OBBBA) includes several provisions that directly impact how capital expenditures (CapEx) are treated for tax purposes. These changes are especially relevant for businesses considering waterjet or plasma cutting tables, which qualify under the updated depreciation and expense rules.

Tax Treatment of Equipment Purchases Under OBBBA

100% Bonus Depreciation

The OBBBA reinstates 100% bonus depreciation for eligible property placed in service after January 19, 2025. This applies to most tangible personal property with a useful life of 20 years or less. Both Hypertherm and OMAX equipment fall under this category.

• Immediate Deduction: Businesses can deduct the full cost of qualifying equipment in the year of purchase.

• Example: A $100,000 machine purchase at a 21% corporate tax rate results in $21,000 in tax savings in Year 1.

• Cash Flow Impact: This provision improves liquidity by reducing taxable income immediately, rather than spreading deductions over several years.

Enhanced Section 179 Expensing

The maximum deduction limit under Section 179 has been increased to $2.5 million. This allows small and mid-sized businesses to expense a broader range of capital purchases upfront. Section 179 can be used in combination with bonus depreciation. Particularly beneficial for businesses purchasing multiple machines or expanding operations.

Equipment Overview: Waterjet and Plasma Cutting Tables

Hypertherm Plasma Cutting Systems

Hypertherm produces plasma cutting systems designed for speed and efficiency in cutting conductive metals such as steel, aluminum, and stainless steel.

• Cutting Method: Electrically conductive gas transfers energy from a power supply to the cutting material.

• Advantages:

  • Fast cutting speeds

  • Smooth edges with minimal finishing required

  • Suitable for thick materials and high-volume production

• Product lines:

  • Powermax^® series for portable and mechanized cutting

  • XPR^® series for advanced X-Definition^® cut quality

  • Software: ProNest® CAD/CAM software supports part nesting and workflow optimization.

OMAX Waterjet Systems

OMAX Corporation manufactures abrasive waterjet cutting machines suitable for a wide range of materials including metal, glass, stone, and composites.

• Cutting Method: High-pressure water mixed with abrasive particles cuts without heat.

• Advantages:

  • Fast cutting speeds

  • Smooth edges with minimal finishing required

  • Suitable for thick materials and high-volume production

OMAX offers several product lines including OptiMAX, MAXIEM, GlobalMAX, and ProtoMAX, each designed for different shop sizes and production needs.