The Return of 100% Bonus Depreciation (and Other Major Tax Wins for Investors & Entrepreneurs)
By Addison Thom | SDIRA Wealth
If you're a business owner or real estate investor, chances are you’ve asked this question recently:
“When is bonus depreciation going back to 100%?”
Good news—it’s happening.
The House Ways & Means Committee has released proposed amendments to what’s being called the “One Big Beautiful Bill,” and the headline is a game-changer:
✅ 100% Bonus Depreciation is officially back—through 2029.
And that’s just the beginning.
From real estate incentives to R&D write-offs, this bill is loaded with provisions that could significantly impact your bottom line. Here’s a breakdown of the key updates you need to know—and the strategic moves to consider right now.
Key Wins in the New Tax Bill
100% Bonus Depreciation (No Phase-Down This Time)
Investors and business owners can once again deduct the full cost of qualifying assets in the year they’re placed in service—with no phase-down schedule.
Applies through 2029 (2031 for longer production assets)
This is a huge opportunity to maximize tax efficiency and reduce taxable income immediately.
R&D Expensing Returns
R&D costs are now fully deductible again (no more multi-year amortization), which is a major win for innovation-driven companies.
Bonus: Small businesses (<$5M revenue) can apply up to $250K of R&D credits toward payroll taxes.
Interest Deductibility Improves
Back to EBITDA-based limits from 2025 to 2029. This gives leveraged businesses more room to operate and grow without getting penalized.
QBI Deduction Increased to 23%
The Qualified Business Income (QBI) deduction increases from 20% to 23%, and it’s now permanent.
A significant benefit for owners of pass-through businesses like LLCs, S Corps, and partnerships.
Section 179 Expensing Expanded
Deduction limit jumps from $1M to $2.5M
Phase-out threshold increases to $4M
If you’ve been holding off on capital expenditures, now is the time to act.
Opportunity Zones 2.0
Program extended through 2033
New incentives targeting rural areas (33% of the new zones)
Opens up fresh pathways for long-term, tax-advantaged real estate investing
Manufacturing & Business Incentives
New Manufacturing Tax Rate
Businesses engaged in qualified U.S.-based manufacturing could benefit from a reduced tax rate of 15–20%, designed to encourage reshoring and domestic production.
Lesser-Known (But Still Powerful) Provisions
No Tax on Tips: Service workers earning under $150K/year won’t pay tax on tips
Car Loan Interest Deduction: Up to $10K deductible (2025–2028) for U.S.-assembled vehicles
Estate Exemption Doubled: Lifetime gift/estate tax exemption raised from $7M to $15M
Child Tax Credit: Increased from $2K to $2.5K per child, with future inflation adjustments
Senior Bonus Deduction: $4K standard deduction increase for Social Security recipients
SALT Cap Adjustments: Some pass-through businesses receive carveouts
Green Energy Credits: Many incentives now sunsetting faster than expected
Tax Cuts Extended: The 2017 individual tax cuts continue beyond 2025
Personal Exemptions: Officially eliminated for good
Strategic Moves to Consider Now
1. Plan Capital Expenditures
With 100% bonus depreciation and increased Section 179 limits, now’s the time to reinvest into income-producing or efficiency-improving assets.
2. Review Your Business Entity Structure
The QBI changes and manufacturing tax rates may prompt a re-evaluation of your current entity setup. Is your structure aligned with your long-term tax strategy?
3. Act Early on New Real Estate Investments
Bonus depreciation favors new construction real estate—and that’s our lane. Adding another property to your portfolio could allow you to significantly offset income in 2025 and beyond.
A Quick Note on Timing
The goal is to pass this bill by July 4th, so things are moving quickly.
As always, we’ll keep you updated with developments as they unfold, but if you’re considering a new investment—or you’re unsure how these changes affect your current strategy—this is the time to talk.
Let’s Talk Strategy
At SDIRA Wealth, our team stays on the cutting edge of tax law and investment structure so you don’t have to.
If you want to take full advantage of these new incentives—while building real, lasting wealth through real estate—we’re here to guide you.
Your next move could be your smartest yet.
Let’s map out the best path forward.
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Let’s get you on the path to real estate wealth—with clarity and confidence.
