100% Bonus Depreciation is back.

Important Tax Update: 100% Bonus Depreciation Reinstated

The “One Big, Beautiful Bill” Act (OBBBA) has reinstated 100% Bonus Depreciation, a change that may significantly impact tax planning strategies for businesses and investors.

Here’s what you need to know:

• Bonus Depreciation allows you to write off the full cost of qualifying capital expenditures immediately, rather than depreciating them over 5, 7, or 15 years.

• Prior to OBBBA, the rate was set to decline—40% in 2025 and 20% in 2026. Now, it’s been permanently reset to 100%.

• This accelerated deduction can reduce your tax burden in the year you make capital improvements.

Bonus depreciation typically applies to:

• Personal property such as furniture, fixtures, and equipment

• Land improvements like paving and landscaping

• Certain components of newly acquired or constructed buildings—if a cost segregation study is performed

The GranthamPoole cost segregation team has conducted studies on thousands of buildings over the past 25 years, helping clients identify and reclassify assets to maximize tax savings.

If you're considering capital investments or want to explore how this change might affect your business, we’re here to help.