Editor’s Note: The 2017 tax reform legislation generally allowed 100 percent bonus depreciation for business owners with respect to property that is placed in service after September 27, 2017 and before January 1, 2023.
The 2025 OBBB restored 100 percent bonus depreciation with respect to property placed in service after January 19, 2025 (the 100 percent provision is permanent). Further, under the 2017 tax reform legislation, the requirement that the property be originally placed into service by the taxpayer is removed (i.e., tax reform permits accelerated expensing of used assets,
see Q
).
1 Temporary Bonus Depreciation Rules
The rules governing bonus depreciation have been amended several times. The 2025 OBB restored 100% bonus depreciation. The 100% bonus depreciation provision is permanent for qualified property that is acquired and placed into service on or after January 20, 2025.
Under the 2017 tax reform legislation, the following rules applied.