Sponsors (35)
The bill permanently accelerates expensing to boost business cash flow and investment (including for farmers) but does so at the cost of reduced federal revenue and uneven tax benefits, with some increased administrative burdens.
Businesses and individuals that buy qualifying business property can permanently deduct 100% of the cost in the year the property is placed in service, improving cash flow and lowering near-term tax bills for investors and small businesses.
Farmers and agricultural producers can claim bonus depreciation for planted or grafted plants without a 2027 cutoff, ensuring continued immediate expensing for agricultural investments regardless of planting date.
Taxpayers may be able to file amended returns or claim refunds because the change is applied retroactively to the 2017 Act, potentially unlocking tax benefits for prior years.
All taxpayers face higher federal budget deficits or a need to cut or reallocate spending because permanent 100% bonus depreciation reduces federal tax revenue.
Businesses that invest in eligible, depreciable property benefit more than businesses whose expenses are not eligible, creating unequal tax treatment that favors capital-intensive investment.
The retroactive change will increase IRS processing workload and may raise compliance costs for taxpayers who must file amended returns, creating administrative burdens for both filers and the IRS.
Based on analysis of 2 sections of legislative text.
Makes 100% bonus depreciation permanent for qualified property placed in service after September 27, 2017, by amending Internal Revenue Code section 168(k) and making conforming technical changes; the change is treated as if enacted with the 2017 tax law (retroactive to that enactment). One minor provision only provides a short title and contains no operative requirements.
Introduced January 21, 2025 by Jodey Cook Arrington · Last progress January 21, 2025