The permanent return of 100% bonus depreciation creates a significant opportunity to improve cash flow on new construction and renovation projects.
Even if your project started before January 19, 2025, you may still qualify through the component election, allowing eligible portions of your project to receive 100% bonus depreciation.
Could Your Project Benefit?
Your project may qualify if you are:
- ✔ Constructing a new commercial building
- ✔ Developing multifamily or affordable housing
- ✔ Renovating or expanding an existing property
- ✔ Completing tenant improvements
- ✔ Placing assets in service after January 19, 2025
- ✔ Planning a cost segregation study
Why It Matters
Instead of evaluating your building as one asset, the component election allows qualifying assets, such as building systems and Qualified Improvement Property (QIP), to be analyzed separately.
That means portions of your project may still qualify for 100% bonus depreciation, even when the entire building does not.
What Should You Review?
- Construction start dates
- Contract execution dates
- Asset acquisition timing
- Projects spanning multiple tax years
- Cost segregation opportunities
- Qualified Improvement Property (QIP)
Maximize Your Tax Savings
A coordinated review of your construction timeline, contracts, and cost segregation study can help identify qualifying assets and maximize first-year depreciation deductions.
If you're planning, building, or renovating, now is the time to evaluate your project.
