But there’s good news: A significant shift in tax policy has restored 100% bonus depreciation on qualifying equipment purchases. For eligible fuel retailers, that means the full cost of new equipment can be deducted in the same year it’s placed into service – dramatically improving the financial case for upgrading now.
Here’s why acting now matters more than ever:
Understanding 100% Bonus Depreciation
100% bonus depreciation allows retailers to deduct the entire cost of qualifying equipment in the year it is placed into service, rather than depreciating it over several years.
For retailers investing in fuel dispensers, tank monitoring systems, point of sale, or other c-store or forecourt equipment, this creates an opportunity to accelerate tax savings and improve cash flow.
It can even be done without retailers needing to fully cover the cost upfront – we'll touch more on that later.
The Window of Opportunity
Tax incentives don't always last forever. There’s always a risk of phasedowns or policy changes that could affect timing or eligibility requirements – greatly reducing your ability to capitalize on this opportunity.
Remember, you can only realize these business benefits for equipment that is installed and placed into service in the same year.
Starting your upgrade process now helps ensure adequate time to complete the project and potentially capture the available tax benefits before year-end.
Disclaimer: It is important to consult your tax advisor to make the most of these opportunities.
More Than Just Tax Incentives: The Business Case for Upgrading Now
The tax incentives are an obvious plus, but there are also many other compelling operational and competitive reasons why retailers should consider modernizing their c-store and forecourt equipment.
Modern c-store and forecourt solutions have evolved into technology platforms that can provide retailers with:
- Increased uptime
- Reduced maintenance costs
- Enhanced fraud protection
- EMV/PCI compliance
- Faster transactions and expanded payment options
- Improved customer experience and loyalty integration capabilities
- Advertising opportunities through media screens
- Support for alternative fuels and future technologies
- And so much more!
Not only can outdated equipment lead to higher maintenance costs, increased downtime and lost revenue, but it can also increase the risk of falling behind competitors who are investing in newer technologies.
The Opportunity to Finance Instead of Paying Cash
As we said earlier, taking advantage of this benefit doesn’t necessarily require retailers to write a large check covering the full cost upfront.
Through financing, retailers may be able to preserve working capital while still receiving the full depreciation of deduction, significantly reducing the effective cost of an upgrade while preserving liquidity.
That capital can then be used for things like inventory, payroll, maintenance, acquisitions, and day-to-day operations.
Financing can also allow retailers to potentially match monthly payments with the revenue generated by the upgraded assets.
This approach not only supports day-to-day operations, but also ensures retailers have the financial flexibility to pursue continued business growth.
Financing Through Patriot Capital
We’ve partnered with Patriot Capital to bring flexible financing options to our customers for years.
Patriot Capital has over 25 years' experience specializing in equipment financing and has developed a deep expertise within the fuel and convenience retail industries – meaning they can often provide faster decisions, flexible structures, and financing solutions tailored specifically to the needs of retailers.
While every transaction is customized, a typical fuel dispenser replacement project may include:
- Terms ranging from 24 to 84 months
- Competitive fixed rates
- Financing for equipment, installation, tax, and related project costs
- One-page application
- 24-48 hour credit decisions
- Funding coordinated directly with distributors and installers
Patriot Capital can also structure financing for multi-site upgrade programs in a variety of ways, depending on the customer’s needs and project timeline.
The Bottom Line
By acting today, retailers can make upgrades on their own terms while taking advantage of favorable tax treatment and flexible financing solutions.
Preserving valuable capital while reaping the benefits that modern c-store and forecourt solutions bring. That’s a win-win!
A great opportunity to utilize these incentives would be for the approaching PCI compliance deadline that requires all PCI 2.x devices (which includes FlexPay II OPTs) be removed from the field by December 2027.
By upgrading now, retailers can capitalize on 100% bonus depreciation and keep their site(s) compliant and secure.