2028 Bonus Depreciation
2028 bonus depreciation: 100% restored under OBBB (P.L. 119-21). Was phasing down 80%/60%/40%/20% under TCJA. Now full first-year deduction for qualified property.
| Asset cost | — |
| 2028 bonus depreciation (100%) | — |
| Standard MACRS year 1 | — |
| Acceleration vs MACRS | — |
| Federal tax saved | — |
Under OBBB (P.L. 119-21, July 2025), 2028 bonus depreciation is restored to 100% — full first-year deduction for qualified property. TCJA's 80%/60%/40%/20% phase-down is reversed. Applies to property with MACRS recovery period ≤ 20 years.
OBBB Restored 100%
TCJA had bonus depreciation phasing: 100% (2017-2022), 80% (2023), 60% (2024), 40% (2025), 20% (2026), 0% (2027+). OBBB (signed July 4, 2025) restored 100% retroactive to Jan 1, 2025 and made permanent. Major tax planning shift for capital-intensive businesses.
Qualified Property
MACRS recovery period ≤ 20 years. Includes: equipment, vehicles, computers, furniture, qualified improvement property (QIP — interior commercial improvements). Excludes: real property (buildings 39-yr / 27.5-yr), patents, copyrights, intangibles.
Bonus vs Section 179
Section 179: $1.22M (2027 limit, projected $1.25M 2028) cap with $3.05M phase-out. Bonus: no cap. Section 179 only if positive taxable income. Bonus can create NOL. Most businesses use both — Section 179 first, bonus on excess.
State Conformity Varies
Many states do NOT conform to federal bonus depreciation. California, New York, Texas (no income tax), Pennsylvania, Wisconsin, others require state-level add-back. Calculate state deduction separately or risk underpaid state tax.
Last updated May 2026. Sources: IRS Pub 946.