Thanks to the One Big Beautiful Bill Act (OBBBA), 100 percent bonus depreciation has been restored and made permanent. And there’s more.
The Section 179 limits have been greatly expanded.
Plus, there is a brand-new, whopping 100 percent deduction for qualified production property.
100 Percent Bonus Depreciation
100 percent bonus depreciation is back for property acquired and placed in service January 20, 2025, and later.
What’s more, the OBBBA has made it permanent. We’ve had 100 percent bonus depreciation before (during 2018-2022), but it was never permanent.
The bonus percentage was reduced to 80 percent for 2023 and 60 percent for 2024. The percentage was 40 percent for 2025 until the OBBBA was passed. The 40 percent deduction now applies only to property acquired from January 1, 2025, through January 19, 2025 (although you can still use the 40 percent bonus for all of 2025 if you want to).
Permanent 100 percent bonus depreciation is a sea change in the tax law that makes bonus depreciation the go-to method for deducting personal and other property that qualifies.
You can use bonus depreciation to deduct any property you acquire by purchase from an unrelated party that has a depreciation period of ... Log in to view full article.
