Discover how the One Big Beautiful Bill Act (OBBBA) brings back 100% bonus depreciation and why it’s a golden opportunity for businesses. Learn exactly what qualifies, how this permanent change affects financial planning, and how AI tax research tools can help you maximize the benefits. Ready to boost ROI and reclaim your edge? Read on—and claim your advantage.
What the OBBBA Changes for Bonus Depreciation
Under OBBBA, Congress fully reinstates 100% first‑year bonus depreciation—permanently—for assets placed in service after January 19, 2025. Previously, bonus depreciation was dialed back to 40% for 2025 under earlier law.
What’s Included:
- Tangible personal property with a recovery period of 20 years or less.
- Qualified production property (manufacturing, refining, agricultural, chemical) if placed in service post-January 19, 2025, with stricter timelines for construction start and service dates.
- Expanded Section 179 expensing, with the deduction limit doubled to $2.5 million in 2025 (phasing out at $4 million), and inflation indexing starting 2026.
Why This Matters
1. Improved Cash Flow & Reduced Tax Burden
Writing off 100% of eligible assets immediately lowers taxable income in the acquisition year—resulting in immediate tax savings and freeing up capital.
2. Enhanced Investment Decisions
With permanent bonus depreciation, finance teams can make investment plans with confidence, using reliable projections in AI tax planning tools.
3. AI‑Driven Optimization
Agentic AI tax tools can automate:
- Asset qualification checks under Section 168(k)
- Timely identification of eligible purchases aligned with placement/service dates
- Real-time integration of bonus depreciation into modeling and forecasts
How to Maximize Bonus Depreciation
| Strategy | Description |
| Asset Inventory Review | Use AI tools to flag purchases under 20-year recovery property. |
| Timing Alignment | Schedule acquisition/service dates post–Jan 19, 2025 to qualify. |
| Combine with Section 179 | Use increased Section 179 cap ($2.5M) for additional write-offs. |
| Leverage AI Tools | Streamline depreciation schedules and ensure compliance with AI tax planning and research tools. |
Summary
OBBBA’s reinstatement of permanent 100% bonus depreciation, combined with an expanded Section 179, offers a rare opportunity to boost cash flow and improve ROI on capital investment. However, success hinges on precise tax planning and timing.
Ready to optimize bonus depreciation impact? Connect with our AI-driven tax planning services today and ensure your bonus depreciation work smarter. Discover how our platform empowers advisors and taxpayers to harness OBBBA’s benefits with confidence.
Try our AI tax tool today or book a free demo and see how you can serve your clients with confidence, accuracy, and speed.