Qualified property acquired and placed into service after january 19, 2025, may now be eligible for 100% bonus depreciation The goal of reinstating bonus depreciation is to incentivize investment in real estate, equipment and other assets, with the intent of boosting the economy and driving growth. Navigate the temporary 100% bonus depreciation rules The one big beautiful bill act (obbba) makes permanent 100% bonus depreciation for most property acquired after jan The obbba also extends 100% bonus depreciation to a new category of building property—qualified production property—albeit on a temporary basis. Before obbba, bonus depreciation was phasing out and was set to drop to 40% in 2025
With the new law, 100% bonus depreciation is now permanently reinstated for qualified property acquired and placed in service after january 19, 2025. Under the newly passed bill, 100% bonus depreciation is reinstated starting in tax year 2025 It’s not yet clear if this reinstatement will be permanent or temporary, but for now, businesses can confidently plan around full expensing of qualifying property. 100% bonus depreciation is now sustained for qualifying property placed in service after january 19, 2025 For years, bonus depreciation has been a powerful tax tool for businesses investing in equipment, vehicles and other qualified assets. The recent one big beautiful bill act brings excellent news for business owners
