Supercharging Your Business Investments: The New 100% Bonus Depreciation Rules

At Z Advisory Group, we know that timing is everything in business—especially when it comes to the tax code. On July 4, 2025, a landmark piece of legislation known as the One Big Beautiful Bill Act (OBBBA) was signed into law, fundamentally changing the landscape for business owners and real estate investors.

If you’ve been waiting for the "right time" to upgrade your equipment or invest in your facilities, that time has officially arrived.

What is 100% Bonus Depreciation?

Bonus depreciation is a tax incentive that allows businesses to immediately deduct a large percentage of the purchase price of eligible assets in the year they are placed in service, rather than spreading that deduction over many years. This creates a massive "day one" tax break, drastically reducing your taxable income and putting cash back into your operations.

The OBBBA Shift: What Changed and When?

Before the OBBBA, bonus depreciation was on a "phase-down" schedule. In 2024, it was only 60%, and it was scheduled to drop to 40% in 2025. The new law has completely reversed this trend:

• Permanent 100% Bonus Depreciation: For qualified property acquired and placed in service after January 19, 2025, you can once again deduct 100% of the cost.

• The Transition Period: Assets placed in service between January 1, 2025, and January 19, 2025, remain at the 40% rate.

• Retroactive Opportunities: If you are a manufacturer or producer, the OBBBA introduces new categories for "Qualified Production Property" with specific look-back provisions.

CPA Tip: The "Acquisition Date" is key. If you signed a binding contract for a purchase before January 20, 2025, you might still be locked into the lower phase-down rates. It is vital to review your contracts with us to ensure you qualify for the full 100%.

What Types of Property Qualify?

To maximize your savings, you need to know which assets fall under the 100% umbrella. Generally, any property with a "recovery period" of 20 years or less qualifies.

1. Tangible Personal Property (5- and 7-year life)

• Computers, laptops, and servers.

• Office furniture and equipment.

• Manufacturing machinery and specialized tools.

• Vehicles used for business (subject to certain weight requirements).

2. Land Improvements (15-year life)

• Paved parking lots and sidewalks.

• Fences and landscaping.

• Outdoor lighting and signage.

3. Qualified Improvement Property (QIP)

This is a huge win for commercial tenants and landlords. QIP refers to interior improvements made to a nonresidential building (like a retail store or office) after the building was first placed in service. This includes:

• Drywall and partitions.

• Interior lighting and plumbing fixtures.

• Flooring and ceilings.

Note: Elevators, escalators, and building expansions do not count as QIP.

Why Z Advisory Group?

The restoration of 100% bonus depreciation is the most significant tax-saving opportunity for businesses in years. However, claiming it correctly requires precise documentation and an understanding of how it interacts with other provisions like Section 179 and Cost Segregation.

As your local tax partners in Miami-Dade and Broward County, Z Advisory Group specializes in helping businesses navigate these new 2025 regulations. We help you identify every eligible asset so you don't leave a single dollar on the table.

Ready to lower your 2025 tax bill?

The OBBBA has opened a door for unprecedented growth. Let’s make sure you walk through it.

Contact Z Advisory Group today for a comprehensive review of your 2025 capital expenditure plan. We’ll show you exactly how much you can save under the new 100% rules.