Trump Confirms 100% Bonus Depreciation as a Priority
President Donald Trump has recently stated that 100% bonus depreciation is a priority in what he refers to as One Big Beautiful Bill.
So, what implications does this have for business owners, and how quickly might it be enacted into law?
Battle of Big Beautiful Bill in Congress
Right now, there’s a war raging in Congress. Both the House and Senate have competing tax plans—and they don’t agree on much. However, Trump has officially backed the House’s version. The Senate, on the other hand, has a slower-moving approach that could delay implementation.
Why is 100% Bonus Depreciation Likely to Pass?
There are a few key reasons why this provision has strong momentum:
Lower Cost Compared to Other Tax Cuts – The estimated revenue reduction is only $380 billion over ten years, making it one of the more affordable provisions in the bill.
Bipartisan Appeal – Both economists and Congress support 100% expensing because it encourages business investment and economic growth.
Temporary but Significant – While the provision may only last for a decade, it still offers a major incentive for businesses to invest in equipment, real estate improvements, and other assets.
Trump’s Push for Faster Action
The House is already approved a budget framework, moving far quicker than many anticipated. Trump is also exerting pressure on Congress, with Vice President JD Vance recently meeting with the Senate to “discuss” their plans —likely urging them to fall in line. But will it work?
The Senate’s History of Delays
There is a push for a permanent extension of the Trump tax cuts, but achieving this will be challenging given the current budget plan.
Last year, the Senate blocked 100% bonus depreciation, and it’s known for slowing things down. However, if Trump applies enough pressure, this provision could pass sooner rather than later.
For reconciliation to be effective, both the House and Senate need to agree on the same budget resolutions. This process enables the party in control of Congress and the White House to pass significant policy legislation along party lines, bypassing the Senate filibuster.
What’s the ETA?
Likely Possible Approval: This Summer
Latest Possible Approval: Uncertain, but momentum is building
While nothing is guaranteed, the return of 100% bonus depreciation appears more likely than ever. With strong support from both sides of the aisle and Trump pushing for speed, businesses should prepare for potential changes.
Stay tuned, because the upcoming months might deliver significant updates for tax planning and business investments!
Disclaimer: Tax policy can be quite intricate. It's always a good idea to seek advice from a qualified tax professional before making any major financial decisions.
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