First-year bonus depreciation had been phasing down 20% annually since 2023 and was set to drop to 0% in 2027. Businesses have been eager to learn the fate of this popular depreciation-related tax break. The good news is that the One, Big, Beautiful Bill Act makes permanent 100% first-year bonus depreciation for the cost of qualified new and used assets acquired and placed into service after Jan. 19, 2025. The new law also introduces a 100% deduction for the cost of “qualified production property” (nonresidential real property used in manufacturing) placed into service after July 4, 2025, and before 2031. Contact us to learn about these and other business-related tax provisions in the law.
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