The One Big Beautiful Bill Changes to Bonus Depreciation

The OBBB makes 100% Bonus Depreciation under IRC Section 168(k) permanent—eliminating the phase-outs introduced in the 2017 Tax Cuts and Jobs Act. Taxpayers may claim 100% bonus depreciation for qualified property acquired and placed in service on or after January 19, 2025.

Additionally, the provision allows taxpayers to elect a reduced bonus depreciation of 40% (or 60% for longer production period property or certain aircraft) in lieu of the 100% rate for qualified property placed in service during the first tax year ending after January 19, 2025.

A cost segregation study can help you maximize these benefits. Contact us if you need assistance evaluating the deduction for any recently acquired or constructed property.