Permanent 100% Bonus Depreciation Passes
- Rick Ruberg
- Jul 3
- 2 min read
It’s Official: 100% Bonus Depreciation Is Back and It's Here To Stay!
After months of speculation, rumors, and late-night negotiations, President Trump’s sweeping tax package, the “One Big Beautiful Bill” has finally crossed the finish line.
The Senate passed it earlier in the week with a dramatic 51-50 vote, Vice President JD Vance casting the tie-breaker. The House followed suit with a narrow 216-213 vote, and on July 4, 2025, President Trump signed it into law.
The highlight... 100% Bonus Depreciation has officially been reinstated. This is a major win for real estate investors, business owners, and anyone with capital assets.
Permanent 100% Bonus Depreciation
Verdict: Qualifying assets can be fully written off in year one. For good.
This applies to property acquired after January 19, 2025
No phase-outs, no sunsets
Senate & House: Both sides wanted it to be permanent (no changes to the Bill)
Businesses will be able to immediately write off qualifying assets that are put into service after January 19, 2025, which means the previous phase-down plan is off the table. This shift is anticipated to boost capital investment across various industries significantly.
Here’s some other key dates of what else made it into the final bill, consult with your tax advisor and adjust your strategy accordingly.
Key Dates:
July 4, 2025: Trump signs bill
January 19, 2025: 100% Bonus depreciation effective
January 1, 2025: Business interest and R&D provisions kick in
January 1, 2025: SALT cap changes effective
January 1, 2026: QBI and 1099 threshold changes effective
What Should You Do Now?
Equipment and Real Estate Purchases: Start planning now. With permanent 100% bonus depreciation, every qualifying equipment purchase made after January 19, 2025, is eligible for full expensing in year one. No more uncertainty—this is locked in.
R&D Deduction Strategy: Review all domestic R&D activities. Immediate expensing applies to amounts paid or incurred in tax years beginning after December 31, 2024. Ensure documentation is in order.
SALT Planning: Take advantage of state and local tax (SALT) relief through 2029, but prepare for the $10,000 cap to return in 2030. Use this five-year window strategically.
1099 System Readiness: A new $2,000 threshold for 1099 reporting begins in 2026. Now’s the time to update your accounting systems and vendor processes.
Entity Structure Review: The permanent QBI deduction with higher income thresholds could affect your ideal entity setup. Re-evaluate to ensure you're maximizing tax efficiency.
In Closing:
The House’s priorities won out on the Big Beautiful Bill. Delivering long-term SALT relief and enhanced estate tax exemptions, while Senate deficit concerns took a back seat.
After months of legislative limbo, businesses now have real tax certainty.
With permanent 100% bonus depreciation and the QBI deduction secured, the path is clear for forward-looking tax planning.
This is the most impactful business tax legislation since the 2017 Tax Cuts and Jobs Act.
It’s time to plan with confidence and act accordingly.
Comments