Position on the Proposed Restoration of 100% Bonus Depreciation | Absolute Importance
Overview
In his March 4 address to Congress, President Trump announced his intention to restore 100% bonus depreciation retroactive to January 20, 2025. This provision, originally enacted under the 2017 Tax Cuts and Jobs Act (TCJA), allowed businesses to fully and immediately deduct the cost of qualified property—such as equipment, software, and real property improvements—placed in service during the year.
Under current law, bonus depreciation began phasing out in 2023 and will fully expire by 2027. The bonus rate is 60% in 2024 and will decline to 40% in 2025, 20% in 2026, and 0% in 2027. President Trump’s proposal would reverse that trajectory, reinstating full expensing for capital investment.
As a firm that specializes in cost segregation studies, Maven Cost Segregation: Tax Advisors supports this policy and encourages real estate professionals, CPA firms, and tax advisors to advocate for its passage.
Why This Matters: Technical and Economic Rationale
1. Stronger Incentives for Investment
100% bonus depreciation allows businesses to fully expense capital expenditures in the year they are made. This reduces the after-tax cost of investment and improves project-level cash flow. For real estate investors, this accelerates the timeline to reinvest in new acquisitions, construction, and improvement projects.
2. Boosts Economic Growth and Job Creation
According to the Congressional Budget Office (CBO), extending 100% bonus depreciation would reduce the user cost of capital by 2.3% in 2027, increase private investment by 1.5%, and boost GDP by 0.3% by 2034. The Tax Foundation projects increases to capital stock, wages, and long-term economic output.
3. Offsets Inflationary Erosion
In a high-inflation environment, depreciation deductions that occur over multiple years are worth less in real terms. Immediate expensing helps preserve the present value of deductions, making it especially important for inflation-sensitive sectors like construction and manufacturing.
4. Enables Real Estate Optimization
For properties that do not qualify for Section 179 deductions (due to use type, entity structure, or asset limits), bonus depreciation remains a critical tool. When paired with a cost segregation study, bonus depreciation allows for accelerated deductions on 5-, 7-, and 15-year property classes—covering site improvements, interior finishes, and certain mechanical systems.
Who Benefits?
- Real Estate Investors:Enhanced first-year deductions make more deals viable, improve return on equity, and create more liquidity for reinvestment.
- CPA and Tax Firms:Clearer tax planning and increased demand for advanced depreciation strategies.
- Cost Segregation Firms:Greater utility of detailed engineering studies, as more assets can be moved into short-life categories with immediate expensing.
- American Businesses:Particularly in capital-intensive industries—manufacturing, logistics, hospitality, retail, construction—this provision supports long-term capital formation.
Policy Cost and Fiscal Outlook
- Short-Term Cost:Treasury’s Office of Tax Analysis estimates a 10-year revenue loss of $735 billion if 100% expensing becomes permanent. The largest loss ($217B) occurs in the first year.
- Long-Term Neutrality:Because depreciation is a timing issue, the policy’s long-term cost is mitigated by reduced deductions in later years. CBO notes that some revenue losses are offset as early as 2024.
- Potential Offsets:Congress may explore limiting other tax benefits (e.g., §163(j) interest deductions) to fund expensing—an area to watch for tax advisors.
How to Take Action
We urge all stakeholders to support the restoration of 100% bonus depreciation by engaging directly with policymakers. Here's how:
Step 1: Contact Your U.S. Senators and Representatives
- Find your senators:
- Find your representatives:
When calling or writing, be concise, respectful, and clear about your support. Use specific language:
“ Subject: Support 100% Bonus Depreciation to Keep American Growth Strong
Dear [Senator/Congressman] [Last Name],
My name is [Your Name], and I’m a real estate investor and business owner in [Your State/District]. I’m reaching out to strongly urge you to support making 100% bonus depreciation permanent in the upcoming tax legislation.
Full expensing is critical for encouraging real estate investment, property improvement, and job creation across the country. It allows businesses like mine to reinvest faster, upgrade properties, and help strengthen local economies. Without it, investment will slow, new projects will become more expensive, and small businesses tied to real estate will be hurt at a time when American growth should be the top priority.
100% bonus depreciation has been one of the most effective pro-growth tax policies Congress has ever passed. Making it permanent would directly support American workers, communities, and long-term economic strength.
Please make permanent 100% bonus depreciation a priority in this year’s tax bill. Real estate investors, small businesses, and the American economy are counting on it.
Sincerely,
[Your Name]
[Your City/State]
[Your Company, if applicable]
[Optional: Phone/Email]”
“ Subject: Support 100% Bonus Depreciation to Keep American Growth Strong
Dear [Senator/Congressman] [Last Name],
My name is [Your Name], and I’m a real estate investor and business owner in [Your State/District]. I’m reaching out to strongly urge you to support making 100% bonus depreciation permanent in the upcoming tax legislation.
Full expensing is critical for encouraging real estate investment, property improvement, and job creation across the country. It allows businesses like mine to reinvest faster, upgrade properties, and help strengthen local economies. Without it, investment will slow, new projects will become more expensive, and small businesses tied to real estate will be hurt at a time when American growth should be the top priority.
100% bonus depreciation has been one of the most effective pro-growth tax policies Congress has ever passed. Making it permanent would directly support American workers, communities, and long-term economic strength.
Please make permanent 100% bonus depreciation a priority in this year’s tax bill. Real estate investors, small businesses, and the American economy are counting on it.
Sincerely,
[Your Name]
[Your City/State]
[Your Company, if applicable]
[Optional: Phone/Email]”
Step 2: Share This Page
- CPA firms and cost segregation providers: share this position statement with your networks.
- Trade associations and chambers of commerce: distribute this message as part of your policy alerts.
- Taxpayers and clients: make this part of your year-end planning discussions.
A Patriotic Investment in America’s Future
Encouraging capital investment is not only smart fiscal policy—it’s patriotic. A return to 100% bonus depreciation supports domestic manufacturing, revitalizes real estate development, and reaffirms our national commitment to economic competitiveness.
It’s a policy that rewards businesses for investing in America.
Maven Cost Segregation: Tax Advisors stands with real estate investors, engineers, and accountants across the country in supporting this restoration. Let’s move forward with clarity, precision, and purpose.
IF YOU ARE A COST SEGREGATION COMPANY OR ACCOUNTING FIRM AND WOULD LIKE TO JOIN THE #BRINGBACKBONUS CAUSE PLEASE REACH OUT TO US TO LEARN MORE
#BringBackBonus: Restore 100% Bonus Depreciation
Join the industry movement supporting the restoration of 100% bonus depreciation for American businesses and real estate investors
Why This Matters
President Trump's proposal to restore 100% bonus depreciation retroactive to January 20, 2025 would provide significant economic benefits for real estate investors, businesses, and the American economy:
- Stronger Investment Incentives: Full expensing reduces the after-tax cost of capital investments, improving project-level cash flow and accelerating the timeline for new acquisitions and improvement projects.
- Economic Growth Engine: According to economic analysis, extending 100% bonus depreciation would boost private investment, increase wages, and drive GDP growth.
- Inflation Protection: In today's high-inflation environment, immediate expensing helps preserve the present value of depreciation deductions.
- Real Estate Optimization: When paired with cost segregation studies, bonus depreciation enables accelerated deductions on 5-, 7-, and 15-year property classes—covering site improvements, interior finishes, and mechanical systems.
By signing this petition, you're joining a coalition of real estate investors, CPAs, cost segregation specialists, and business leaders advocating for smart fiscal policy that rewards investment in America's future.
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Email Template (for Real Estate Investors)
Subject: Support 100% Bonus Depreciation to Keep American Growth Strong
Dear [Senator/Congressman] [Last Name],
My name is [Your Name], and I’m a real estate investor and business owner in [Your State/District]. I’m reaching out to strongly urge you to support making 100% bonus depreciation permanent in the upcoming tax legislation.
Full expensing is critical for encouraging real estate investment, property improvement, and job creation across the country. It allows businesses like mine to reinvest faster, upgrade properties, and help strengthen local economies. Without it, investment will slow, new projects will become more expensive, and small businesses tied to real estate will be hurt at a time when American growth should be the top priority.
100% bonus depreciation has been one of the most effective pro-growth tax policies Congress has ever passed. Making it permanent would directly support American workers, communities, and long-term economic strength.
Please make permanent 100% bonus depreciation a priority in this year’s tax bill. Real estate investors, small businesses, and the American economy are counting on it.
Sincerely,
[Your Name]
[Your City/State]
[Your Company, if applicable]
[Optional: Phone/Email]
Updated Phone Call Script (for Real Estate Investors)
Intro:
- – "Hi, my name is [Name]. I’m a real estate investor and a constituent in [City/State]."
- – "I'm calling to urge [Senator/Congressman] [Last Name] to support making 100% bonus depreciation permanent in the upcoming tax package."
Talking Point 1: American Investment and Growth
- – "Full expensing directly supports American investment, drives economic growth, and helps real estate projects move forward faster."
- – "It’s one of the most proven ways to fuel property upgrades, construction jobs, and business expansion across the country."
Talking Point 2: Risk if it Phases Out
- – "If bonus depreciation phases out, the cost of investment will rise sharply, and a lot of real estate development will slow or stall."
- – "This would hurt job creation and slow down local economies when we should be focusing on national growth and rebuilding."
Talking Point 3: Immediate Need for Action
- – "Congress has already set the budget path. Now we need to make 100% bonus depreciation permanent before the phase-out accelerates next year."
- – "Real estate investors and small businesses are making decisions now based on whether Congress will keep supporting growth."
Closing:
- – "Please tell [Senator/Congressman Last Name] that locking in 100% bonus depreciation will support investment, protect jobs, and strengthen America’s economy for years to come."
- – "Thank you for your leadership on this critical issue."
Quick Option if They Need a 1-Liner for Phone Calls:
“I’m calling to ask [Senator/Congressman] to support permanent 100% bonus depreciation to protect jobs, drive American investment, and keep our economy growing.”
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Sean Graham, CPA
Lead Technical Accountant
Maven Cost Segregation: Tax Advisors
Sean Graham, CPA
Lead Technical Accountant
Maven Cost Segregation: Tax Advisors