ValuePermanent 100% first-year expensing for qualified property acquired after 1/19/2025; energy property generally also 5-year MACRS; new temporary 100% expensing for Qualified Production Property (nonresidential manufacturing real property)
DeadlinesMain provision permanent (no sunset); QPP requires construction start after 1/19/2025 and before 1/1/2029, placed in service before 1/1/2031
RequirementsProperty acquired after 1/19/2025 with recovery period <=20 years; QPP must be US nonresidential real property used in qualified production activity; ITC basis reduction (50% of credit) applies when stacking with 48E
CaveatsQPP excludes office/admin portions of buildings; state conformity varies (CA notably decouples from bonus depreciation)
Last verified2026-07-26