Will 100% Bonus Depreciation Get Extended?

You may know by now that 100% bonus depreciation will be reduced to 80% bonus depreciation beginning January 1, 2023. We have now had 100% bonus depreciation for almost five years (since September, 2017) and most farmers have taken full advantage of it especially the ability to deduct the purchase of used farm equipment.

Now 80% is still a pretty good deal, but it is not 100%. There is quite a bit of chatter about extending 100% bonus deprecation until December 31, 2025 and then have it drop to zero. The assumption is if it is 100%, then zero, that Congress will extend it each year as part of an extenders bill.

We are not sure if this will happen, but we do know it will be debated in the lame-duck session that will happen before year-end. We will keep you posted.