The One Big Beautiful Bill, The Senate Update
The Senate released its text of the legislation (The One Big Beautiful Bill) in full as it relates to specialty taxes.
Bonus Depreciation
- 100% bonus will return for property acquired after January 19, 2025, and be permanent going forward.
- Qualified Production Property is added to 100% bonus depreciation for any non-residential real property that meets the definition of “manufacturing, production, or refining of a qualified product”. Construction must begin after January 19, 2025, and be placed in service before 2031.
Research and Experimental Expenditures (174 Expensing)
- For domestic research and experimental expenditures paid in tax years after December 31, 2024, will be deductible and permanent going forward.
- Appears to give small taxpayers a retroactive election (Gross Receipts less than $31M).
New Energy Efficient Homes Credit IRC 45L and Commercial Buildings Deduction under 179D
- The 45L credit will no longer be available for property acquired 12 months after the enactment of the legislation.
- The 179D deduction will no longer be available for property that begins construction 12 months after the enactment of the legislation.
Clean Energy Production/Investment Tax Credits IRC 45Y and 48E
- The credits will start to phase out after 2032 as originally enacted.
- However, for solar and wind facilities these credits will phase out over the next two years.
This bill still must go to the floor of the Senate and as it stands there are doubts as to whether the Republicans have enough votes due to Medicaid cuts and deficit issues.
We will continue to provide updates as the legislation progresses.
