Trump plan to make 100% tax write-off permanent could cut some taxpayers' bills by six figures

A proposal promoted by former President Donald Trump would make the 100% bonus depreciation tax break permanent, potentially allowing eligible businesses and investors to deduct the full cost of qualifying assets immediately rather than depreciating them over years. First introduced in the 2017 Tax Cuts and Jobs Act and temporarily stepped down in later years, 100% bonus depreciation has been a valuable tool for companies investing heavily in equipment, machinery and certain property improvements.

If enacted, the change could produce substantial cash-tax savings for entities that place large, qualifying capital expenditures in service—particularly higher-income small-business owners, pass-through entities and real estate investors who use cost-segregation studies to reclassify building components into shorter-lived property. The provision generally applies to business property with recovery periods of 20 years or less and to qualified improvement property under current rules, though routine rules and exclusions still apply.

But the benefits are not universal. Taxpayers with limited taxable income may find the immediate deduction produces net operating losses or carries that cannot be fully utilized in the short term. In other cases, accelerated deductions can affect state tax obligations, AMT or future basis calculations, and could change the timing of tax liabilities without altering long-term tax totals. Importantly, the provision must clear Congress to become law and could be modified in committee or during negotiations.

Policy and fiscal trade-offs matter: making an acceleration permanent reduces federal revenue in the near term and is likely to draw scrutiny from lawmakers focused on budgetary impacts. Proponents argue the change encourages investment and simplifies planning; critics warn of short-term revenue loss and uneven benefits concentrated among higher earners.

For business owners and investors wondering whether they stand to gain, the practical next steps are clear: consult a CPA or tax advisor, review planned capital expenditures and discuss cost-segregation opportunities for real estate holdings. Tax mechanics and eligibility details can be complex, and professional advice will help determine whether an immediate 100% write-off would meaningfully reduce your tax bill or simply shift deductions across years.