Financing Insights

How Will Tax Changes Affect Equipment Financing in 2018?

How Will Tax Changes Affect Equipment Financing in 2018?


First American and City National offer insight into how the Tax Cuts and Jobs Act will make equipment financing more attractive than ever before. Read the full article detailing four components of the reform to pay close attention to, including:

  1. Corporate Tax Rate 21% (lowered form 35%)
  2. Interest Expense Deduction (limits interest deduction to 30% of EBITDA from 2018-2021 for businesses with greater than $25 million in annual revenue)
  3. Depreciation Changes (businesses can now expense 100 percent of new and used equipment purchased in the same year)
  4. Like Kind Exchanges (repealed, except real estate)


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First American Commercial Bancorp, Inc. is a wholly-owned subsidiary of City National Bank. Deposit products and services are offered by City National Bank Member FDIC. City National Bank is a subsidiary of Royal Bank of Canada. “First American Equipment Finance” is the trade name for certain equipment leasing and finance businesses of First American Commercial Bancorp, Inc. and its subsidiaries. Equipment financing transactions are provided in Canada by FA Equipment Finance, Inc. For California clients: Loans made or arranged pursuant to a California Finance Lenders Law license. All transactions are subject to credit approval. Some restrictions may apply. All trademarks are the property of their respective owners.

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