Why More Facilities Are Investing in On-Site Nitrogen Plants
Across industries, facility managers are rethinking how they source industrial gases—and for good reason. On-site nitrogen generation is becoming the preferred choice over traditional bulk delivery, thanks to its cost savings, operational efficiency, and independence from supply chain volatility. And now, with the recent passage of The One Big Beautiful Bill, investing in on-site nitrogen generation is even more financially attractive.
This new legislation restores full bonus depreciation, allowing businesses to deduct the entire cost of qualifying equipment—like nitrogen generators—in the same year it’s placed into service.
100% Bonus Depreciation Is Back
Signed into law on July 4, 2025, The One Big Beautiful Bill reinstates 100% bonus depreciation for qualified property acquired after January 19, 2025, and placed into service before January 1, 2030. That means companies can now fully expense the cost of capital equipment—including on-site nitrogen generation systems—in the year they’re installed and operational.
This powerful tax incentive enables facilities to accelerate ROI and strengthen their bottom line, especially when paired with the long-term operational savings that nitrogen generation provides.
The Financial Case for On-Site Nitrogen Generation
Even without tax incentives, on-site nitrogen plants offer significant financial and operational advantages:
- Eliminate recurring delivery fees and rental costs associated with bulk nitrogen
- Avoid volatile pricing and third-party supply disruptions
- Reduce nitrogen waste by producing only what you need, when you need it
- Lower your carbon footprint by eliminating nitrogen delivery truck emissions
With 100% bonus depreciation now in effect, these long-term benefits are supported by immediate tax relief—making the financial case for on-site nitrogen generation stronger than ever.
Why 2025 Is the Right Time to Invest
If your facility has been considering the shift to on-site nitrogen generation, now is an ideal time to act. By investing in equipment this year, you can:
- Take full advantage of 100% bonus depreciation
- Improve operational efficiency and reduce costs
- Gain long-term independence from gas suppliers
- Strengthen your facility’s supply chain resilience
At On Site Gas Systems, we design and build nitrogen generation systems right here in the USA, backed by more than 35 years of experience and supported by a nationwide service team.
Get Started with On Site Gas Systems
With the passage of The One Big Beautiful Bill, on-site nitrogen plants are now not just an operational upgrade—they’re a strategic financial decision. If you’re ready to explore your options and take advantage of this new tax opportunity, contact us today. We’ll help you design the right nitrogen solution for your facility, with custom options, fast turnaround, and dedicated support.