Jul 07, 2025 OBBBA Makes 100% Bonus Depreciation Permanent

With the passage of the One Big Beautiful Bill Act (OBBBA), 100% bonus depreciation was made permanent for qualified property placed in service after January 19, 2025. This legislative change significantly enhances the value of cost segregation, a proven tax strategy that accelerates depreciation deductions by identifying and reclassifying building components into shorter recovery periods—typically 5, 7, or 15 years—instead of the standard 27.5 or 39 years. By front-loading depreciation, cost segregation can substantially improve cash flow and reduce tax liability in the early years of property ownership.

Prior to the passing of the One Big Beautiful Bill on July 4, 2025, bonus depreciation was on a steep decline:

• • • 2022: 100%
  • • 2023: 80%
  • • 2024: 60%
  • • 2025: 40%
  • • 2026: 20%
  • • 2027: 0%

The OBBBA eliminated the phasedown of bonus depreciation, restoring 100% bonus depreciation for qualified property placed in service on or after January 20, 2025. It is important to note that assets placed in service between January 1 and January 19, 2025, remain subject to the previous 40% bonus depreciation rate. This distinction makes the effective date of January 20, 2025, a critical consideration for planning and compliance.

Contact us to obtain a cost segregation study performed by Certified Cost Segregation Professionals from the American Institute of Cost Segregation Professionals.