100% Bonus Depreciation Is Back—And It’s Now Permanent
It’s official - on July 4, 2025, the One Big Beautiful Bill Act was signed into law — bringing back 100% bonus depreciation and making it permanent for qualifying property acquired after January 19, 2025.
This marks a significant shift in federal tax policy and presents major planning opportunities for business owners, investors, and financial decision-makers.
What’s in the Final Tax Law?
The new law reinstates and enhances several key provisions, including:
1. Permanent 100% Bonus Depreciation
Businesses can now immediately deduct 100% of the cost of eligible property (such as machinery, equipment, and software) placed in service after January 19, 2025. Unlike the earlier House version, this benefit will not phase out.
Bonus depreciation gives businesses more control over cash flow and accelerates return on investment.
2. Section 179 Expansion
The Section 179 spending limit has been raised to $2.5 million, starting in tax year 2025. This complements bonus depreciation by offering flexibility for small to mid-sized businesses investing in equipment.
3. R&D Expensing Reinstated
The law also reinstates full expensing of domestic research and development (R&D) costs, retroactively to 2022. This reverses the previous requirement to amortize R&D over five years and helps companies investing in innovation recover costs faster.
Other Key Changes
A few other key changes::
Clean Energy Cuts: Solar, wind, and EV tax credits phase out by 2026–2027.
Industry Boosts: Manufacturing, real estate, and defense benefit most.
Permanent Tax Cuts: TCJA tax rates and standard deduction made permanent, with increases for 2025 and inflation adjustments. Seniors 65+ get a $6,000 deduction (2025–2028)
SALT Cap Raised: Deduction cap rises to $40,000 in 2025 (adjusted through 2029), then drops back to $10,000 in 2030; phases down for high earners.
Overtime & Tips Deductible: New deduction (2025–2028) for qualified overtime and tips, phased out at high incomes; payroll taxes still apply.
What It Means for Your Business
This new law can significantly improve tax efficiency for businesses planning capital investments. Whether you’re expanding operations, upgrading equipment, or investing in R&D, the updated tax code now offers:
Faster cost recovery
Improved year-one cash flow
Greater long-term planning flexibility
How Can We Help?
Tax planning isn’t one-size-fits-all. Every business and professional has unique income streams, deductions, and regulatory considerations that generic tax advice often overlooks. That’s where we come in.
At Visibility, we specialize in personalized tax strategies designed to help you reduce liabilities, stay compliant, and plan confidently for the future. Whether you are managing a growing business, navigating complex investments, or simply looking for more financial clarity, our team delivers proactive insights and customized guidance tailored to your goals.
Let us help you make smarter financial decisions—so you can focus on doing what you do best.
Schedule a Discovery Call with us today to learn more!
