If you’re planning to invest in new equipment, computers, furniture, or other property for your business, the One Big Beautiful Bill Act (OBBBA) brings some very welcome news: you can now deduct the entire cost of those purchases in a single year without limit.

And if you’re a manufacturer, it gets even better. The OBBBA introduces a brand-new 100% deduction for factories and other production-related real estate, allowing you to claim massive savings upfront instead of waiting decades.

100% Bonus Depreciation Is Back (and Permanent)

Traditionally, businesses had to spread out deductions for big purchases over several years. Bonus depreciation changed that by allowing an immediate deduction in the year property is placed in service.

The OBBBA restores and permanently sets bonus depreciation at 100% for qualifying property placed in service on or after January 20, 2025.

Here’s what that means in practice:

• Eligible assets: most personal business property, off-the-shelf software, and land improvements like landscaping.
  
• No caps: you can deduct as much as you invest, even if it creates a loss.
  
• Carryforward flexibility: unused deductions can be carried forward to future years.
  
• Exception: passenger automobiles remain capped at $8,000 annually.
  

This change makes bonus depreciation the primary way businesses can deduct personal property costs.

Section 179 Expensing: Still Useful, With Some Changes

The OBBBA also raised the Section 179 limit to $2.5 million for 2025, with a phase-out beginning once you place $4 million worth of property into service.

While bonus depreciation now takes center stage, Section 179 still has planning advantages. Here’s how it differs:

• Requires business use of at least 51%.
  
• Cannot create a loss — deductions are capped at taxable income.
  
• Lets you pick and choose specific assets to expense.
  

For businesses that want more control over which assets to write off, Section 179 remains a powerful tool.

Big News for Manufacturers: A New 100% Real Property Deduction

Perhaps the biggest win from the OBBBA is for manufacturers. Normally, factories and production-related buildings are depreciated over 39 years, a painfully long timeline.

Now, under the OBBBA, you may deduct the entire cost of qualified production property in one year if:

• The property is built between January 20, 2025, and December 31, 2028.
  
• It is placed in service by January 1, 2031.
  
• Certain existing property may also qualify if it wasn’t in service between January 1, 2021, and May 12, 2025.
  

This provision is temporary, but it’s a huge incentive for manufacturers considering expansion or modernization in the coming years.

The OBBBA represents one of the most business-friendly changes to tax law in years. Whether you’re a small business owner investing in equipment or a manufacturer building a new facility, the ability to immediately deduct these costs can free up cash flow, reduce tax liability, and accelerate growth.

However, with multiple options bonus depreciation, Section 179, and new manufacturing deductions tax planning is more important than ever.

At BASC Expertise, we can help you evaluate which strategy works best for your business, so you maximize deductions without creating tax headaches down the road.

Thinking about buying new equipment or property? Let’s talk before you spend a dollar, so we can make sure you take full advantage of the new rules.