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

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.