Under recent legislation, the OBBBA has created additional depreciation opportunities for businesses.

💡 Key Highlights:

• 100% Bonus Depreciation Extended & Made Permanent for qualifying property acquired and placed in service after January 19, 2025.
• General assets: must be in service by Jan 1, 2030
• Long-production assets: must be in service by Jan 1, 2031
• Plants/trees: must be planted/grafted by Jan 1, 2030

🏭 100% Immediate Depreciation for Qualified Production Property (QPP):

• Applies to nonresidential real property used in manufacturing, production, or refining tangible personal property.
• Requires original use by the taxpayer and active business use.
• Eligible for bonus depreciation—with a cost segregation study recommended to determine the eligible basis.

❌ Not Eligible: Office space, administrative areas, lodging, parking, sales, R&D, software development, storage, or other non-production functions.

📈 Tax Planning Opportunities:

• Strategically time equipment purchases
• Optimize cash flow
• Compare Section 179 vs. bonus depreciation
• Plan large capital investments with confidence and clarity