As part of the OBBBA, there are changes to Section 179 and bonus depreciation. The goal is to accelerate deductions for business asset purchases. In a nutshell, bonus depreciation returns to a full 100% for assets placed in service and acquired after January 19, 2025.
This Act increased the Section 179 limit and introduced a higher phase-out threshold based on total qualified fixed asset purchases. And bonus depreciation has been permanently set at 100%!
Some additional details include a limit increase from $1 million to $2.5 million; the phase-out threshold tied to total qualified purchases was also raised from $2.5 million to $4 million with a complete phase-out at $6.5 million. Both changes are effective for assets put in service in tax years beginning on or after January 1, 2025. – CMW