Model Bonus Depreciation Before It Expires

The One Big Beautiful Bill Act, signed July 4, 2025, permanently restored 100% bonus depreciation for qualifying property acquired after January 19, 2025. This eliminates the TCJA phase-down for recent acquisitions and makes cost segregation more valuable than ever.

• 100% bonus depreciation on all 5-year and 15-year MACRS property — permanently
• Applies to property acquired after January 19, 2025
• No phase-down, no expiration — the full bonus is available indefinitely
• Properties acquired on or before Jan 19, 2025 still use the TCJA phase-down schedule
• The calculator automatically detects which regime applies based on your property’s purchase date

Most investors focus on federal tax rates, but state income taxes are equally important for calculating actual cash savings. Cost segregation reduces taxable income at both the federal and state level simultaneously.

• Combined rate = federal rate + state income tax rate
• A 24% federal + 5% state investor has a 29% combined rate
• Every $1 of incremental depreciation generates $0.29 in actual cash savings at 29%
• States without income tax (TX, FL, WA, NV) still benefit from federal savings alone
• Enter your actual rates in the calculator for a personalized analysis

Properties acquired on or before January 19, 2025 still follow the original TCJA phase-down schedule. The study year determines your bonus rate, and the schedule continues to decline.

• Studies performed in 2026 use the 20% bonus rate for TCJA properties
• 2027 and beyond: 0% bonus — only standard MACRS rates apply
• Retroactive studies can still capture prior-year components placed in service since 2017
• Even at 0% bonus, cost segregation still accelerates depreciation via shorter MACRS lives
• The calculator shows savings at all bonus rates so you can compare scenarios