Tax Depreciation and Incentives Changes from the OBBB
September 02, 2025 | By Raphael and Raphael LLP
As we approach the third quarter of 2025 and plan for the coming tax season, it is important to understand the changes to the tax code and how it can benefit you and your business. The recently enacted legislation, known as the 'One Big Beautiful Bill' or OBBB, brings forth significant changes to various tax provisions. These changes not only extend or reshape elements of the Tax Cuts and Jobs Act, but also introduce new considerations for asset depreciation and construction planning. Understanding the impact of these changes on your business is critical as they may require taxpayers to revisit their cost segregation strategies and building timelines.
This article provides an in-depth look into the new legislation, explaining its potential impacts on both commercial and residential building development. It also highlights the reinstatement of bonus depreciation and the introduction of a new qualified production property deduction. To add to this, the article also discusses how these changes can affect real estate owners, developers, and manufacturers through accelerated depreciation and project planning opportunities.
Navigating the complexities of the One Big Beautiful Bill requires more than understanding the changes—it demands strategic implementation tailored to your specific business situation. Whether you're evaluating cost segregation strategies, planning construction timelines to optimize bonus depreciation, or assessing how these changes impact your real estate development or manufacturing operations, our team is ready to transform these complex tax provisions into actionable strategies for your business. Contact us today to discuss how the OBBB can work in your favor and ensure you're positioned to capture every available tax benefit.