The 2 Take-Aways for your Business

Bonus Depreciation is here to stay!

Bonus depreciation under § 168(k) has been made permanent at 100-percent deductible as first-year depreciation for eligible depreciable property acquired after Jan. 19, 2025.

Qualified Production Property makes certain nonresidential real property 100-percent deductible as first-year depreciation. Qualifying Property meets these criteria:

• Used as an integral part of a qualified manufacturing, agricultural or chemical production, or refining

• Construction begins after January 19, 2025 and before January 1, 2029

• Placed in service in the U.S. before January 1, 2031

• Original use begins with you

For payments made after calendar year 2025, the 1099 information reporting payment threshold increases from $600 to $2,000.

R&D Deductions for taxable years beginning after December 31, 2024 are now immediately deductible (or you can amortize them over a period of no less than 60 months).

• For lenders, there is a new tax benefit to support lending for agriculture and rural development

• Changes to to Third Party Network Transaction reporting requirements

• Changes to Carbon Oxide Sequestration Credits for storing carbon underground

• Restrictions on late filed employee retention credits

• Clean vehicle credit expirations

• Plus some relaxed payment terms for farmers from gains on sales of qualified farmland

• Changes for tribal governments and organizations that issue scholarships

• Limits to credits and refunds for employee retention credits (ERC) claimed in 2021

• Clarification of Rural Opportunity Zones

One, Big, Beautiful Bill provisions | Internal Revenue Service