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2025 just brought some serious write-off power back to the table that all contractors should know about as follows:
2025 just brought some serious write-off power back to the table that all contractors should know about as follows:
100% Bonus Depreciation is BackBuy new equipment, vehicles, or certain property after Jan 19, 2025, and you can deduct the full cost right away. No waiting years to depreciate it.
Qualified Improvement Property (QIP)Interior upgrades to commercial buildings — drywall, lighting, HVAC, plumbing — now qualify for immediate expensing. Just keep it inside (no structural work or expansions).
Qualified Production Property (QPP)If you build or own facilities used for manufacturing or production, this new category allows 100% expensing through 2031. Huge for industrial and plant-build contractors.
Section 179 ExpensingLimits are higher in 2025: up to $2.5 M immediate deduction (phase-out starts at $4 M).
Especially with #2-4 above, you can let clients know that any such expenditures would be increasing cash flow in the year based on up to 100% tax write-offs.