Surgent's Depreciation Rules for Bonus and Section 179 Expensing

Overview

Thanks to the One Big Beautiful Bill Act (OBBBA) passed in 2025, 100% bonus depreciation is now permanently available for new and used assets. OBBBA has restored 100% bonus depreciation and increased the depreciation that can be taken under Section 179. OBBBA also provided a new, important depreciation topic — qualified production property. These topics, covered extensively in the program, are vital for tax practitioners advising business taxpayers.

Highlights

• OBBBA permanently restores 100% bonus depreciation
• Notice 2026-11 confirms existing bonus framework and availability of component elections
• Qualified improvement property (QIP) is boosted by OBBBA
• Qualified production property (QPP): established by OBBBA, clarified by Notice 2026-16
  • Definitions
  • Timing
  • Inclusions/exclusions
  • Third-party lease scenarios
  • Election mechanics
  • Recapture
• New enlarged Section 179 ceiling limitations
• OBBBA energy incentives sunset guide
• 179D deduction still in play
• Tangible property regulations and their role in a strategic hierarchy of depreciation

Prerequisites

A basic understanding of the tax rules relating to individual income tax

Designed For

Accounting and finance professionals who anticipate advising clients with respect to depreciation of business property

Objectives

• Understand the new depreciation rules associated with OBBBA

Preparation

None