Big news out of Washington — and it’s great news for commercial real estate. As of July 4, 2025, President Trump has officially signed the One Big Beautiful Bill into law, and buried within this sweeping legislation is one of the most impactful tax wins we’ve seen in years: 100% Bonus Depreciation is back — and this time, it’s permanent.
For commercial real estate investors, this changes everything. Under this new law, any qualifying property improvements placed in service on or after January 19, 2025, can now be fully deducted in year one. That includes things like:
HVAC and mechanical systems
Interior buildouts and tenant improvements
Lighting, signage, and flooring
Roofing and electrical upgrades
So instead of depreciating these costs over 15 or even 39 years, you get immediate tax relief — a full write-off in the year you make the investment.
Example: Spend $500,000 improving a commercial property, take a $500,000 deduction right away.
This more than a tax perk. It’s a strategic advantage that can:
Significantly boost after-tax cash flow
Increase IRR on repositioning and value-add projects
Enhance the impact of cost segregation studies
Allow for smarter timing of acquisitions, renovations, and closings
And since the new provision is permanent, investors have a dependable planning tool that can shape acquisition and renovation strategies for years to come.
This isn’t just policy — it’s powerful. The return of 100% bonus depreciation gives CRE investors a real edge in a high-rate, tight-capital environment. Because when tax law aligns with smart investing — big things happen.
Questions? Contact the TIG Team!
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