Bulletin Board Magazine [Volume 2 - 2025]

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Article provided by Bill McNamara, CPA, CCIFP® WJM Partner

Wanting to promote manufacturing operations here in the USA, we see bonus depreciation now for a whole new class of equipment – Qualified Production Property. This property is classified outside Sec. 168(k)’s recovery period of 20 years. Qualified production property includes nonresidential real property (a building) used as an integral part of qualified production activity, such as manufacturing, production or refining of tangible personal property. Normal depreciation is calculated over a period of 39 years, now it’s all deducted in year one.

qualifying property that exceeds $4 million in total. You may ask why I might need Sec. 179 over 168(k)? Sec. 179 provides an alternative accelerated write-off method for items like new roofing or HVAC installations. the bill focused on the state and local tax (SALT) provisions. The One Big Beautiful Bill adds a new layer of bonus depreciation. This is not an extender or a gap filler like Sec. 179, but rather a whole new area of accelerated recovery. A major negotiating point in gathering votes for passing

ABOUT THE AUTHOR

William C. McNamara, CPA, CCIFP is a founding partner at Woolston, Jensen & McNamara, LLC. For thirty five years, Bill’s focus has centered on the dynamics of the family-owned business in the construction industry. Questions? You can reach Bill at bmcnamara@wjmcpas.com or 732-542-0444.

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