Entity Setup

Qualified Property Now eligible for **Full 100% Bonus Depreciation** — Strategic Buying Opportunities for Businesses

Permanent 100 percent first-year depreciation means accelerated write-offs; here's how to take advantage now under the updated rules.

By NomadicTax Research Team • 5-8 min read • June 8, 2026

## What’s Changed Under the OBBB Act? The *One, Big, Beautiful Bill Act* made permanent the availability of **100% additional first year depreciation deduction** for **qualified property** acquired after **January 19, 2025**, removing earlier phase-downs and time limits. ([irs.gov](https://www.irs.gov/irb/2026-06_IRB?utm_source=openai)) Includes modifications for specified plants and **qualified sound recording productions** added to the definition of eligible property. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-guidance-on-the-additional-first-year-depreciation-deduction-amended-as-part-of-the-one-big-beautiful-bill?utm_source=openai)) ## What Counts as Qualified Property? - Property acquired after January 19, 2025 and **placed in service** in taxable years thereafter. - **Specified plants** planted or grafted after the same date. - Includes certain types of **sound recording productions**, which are newly covered as qualified property under the updated rules. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-guidance-on-the-additional-first-year-depreciation-deduction-amended-as-part-of-the-one-big-beautiful-bill?utm_source=openai)) ## How This Impacts Business Tax Planning - **Cash flow boost**: Full deduction in year one reduces taxable income immediately. Ideal for businesses with capital investments. - Encourages investing in infrastructure, equipment, manufacturing and creative property earlier. - Projects with specified plants (e.g. nurseries or agriculture) and sound recording investment may see unexpected write-off potential. ## Compliance Requirements & Limitations - Must properly acquire and use property in the business. Acquisition dates and placed-in-service dates matter. - Follow IRS guidance—Notice 2026-11 provides interim guidance for eligibility and amount; ensure your records and accounting match required criteria. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-guidance-on-the-additional-first-year-depreciation-deduction-amended-as-part-of-the-one-big-beautiful-bill?utm_source=openai)) - Elections under § 168(k)(5) and (10) may alter how deductions apply—discuss with your tax professional to choose optimal path. ([irs.gov](https://www.irs.gov/irb/2026-06_IRB?utm_source=openai)) - Beware of property types still excluded or phased in by longer production periods or aircraft. Check guidance carefully. ## Example Scenarios _Furniture Manufacturing Firm_: Buys new machinery on February 1, 2025 and places it in service March 1, 2025 ⇒ full cost can be deducted immediately under 100% bonus depreciation. _Agricultural Business_: Plants new nursery stock after Jan 19, 2025 ⇒ can treat those specified plants as qualified, allowing full deduction the year planted. _Sound Producer_: Begins recording album after Jan 19, 2025 ⇒ qualifies under new addition of sound recording production property. ## Tips for Strategic Buying & Year-End Moves - Consider accelerating planned purchases into 2026 rather than waiting, to capture full immediate deduction. - Aggregate capital expenditure plans now, if you anticipate major investments—buying early yields tax savings. - Coordinate with finance and accounting—ensure financial reports reflect accelerated depreciation. - For businesses that sometimes use Section 179, compare bonus depreciation vs. Section 179 vs. regular depreciation to see which gives best tax value in your scenario. ## Common Myths - “You can write off everything, everywhere”—false: only **qualified property**, acquired and placed in service after the date, meets criteria. - “If you wait, you lose everything”—permanent nature of the 100% deduction under OBBB makes that less of a concern—but timing and placement still matter. ## Conclusion This is a major planning lever for 2026 and beyond. If you anticipate buying new equipment, property or recording/audio projects, taking advantage of 100% bonus depreciation can save substantial taxes and improve cash flow. **Action**: inventory your capex plans, confirm what qualifies, and work with your tax team now to optimize deductions.