Ever wonder if one tax change could shake up the economy? The One Big Beautiful Bill, signed into law July 4, 2025, brings back 100% bonus depreciation—businesses can now write off new equipment costs right away and fuel investment across the country. It worked in 2017, as evidenced by the blossoming of an Italian pastry family empire in Michigan.
So, what’s the deal with bonus depreciation? It’s a tax incentive that allows businesses and real estate investors to deduct the full cost of certain assets in the year they start using them, instead of spreading it out over time. The One Big Beautiful Bill locks in 100% bonus depreciation for good, starting with property bought and put into service after Jan. 19, 2025, and before January 1, 2030. Without this law, businesses could only deduct 40% of assets put into use in 2025, with that percentage shrinking each year after.
There is a scope for what qualifies. “Qualified property” is considered tangible stuff like machinery, computers, furniture, or certain land improvements—basically, anything with a recovery period of 20 years or less under IRS rules. This setup means businesses can plan smarter and invest more money into new equipment or upgrades.
A family-owned cannoli and pastry company grew from a small shop to a regional empire because of this tax policy enacted in 2017. Joe Cangiolosi and his three sons launched multiple shops and bakeries across Michigan. In a feature story promoting the One Big, Beautiful Bill, IW Features interviewed the father and one of his sons, Anthony.
Anthony explained that expanded bonus depreciation made it possible for businesses to write off 100% of any necessary equipment purchased between September 2017 and January 2023.
“Especially that first initial year, when you’re investing all that money in display cases, ovens, all kinds of equipment—instead of us having to depreciate it over five years, we were able to depreciate it all in that initial year, which gave us the savings that we really needed at that time,” Anthony Cangiolosi explained. “That’s what helped us the most.”
The impact on the local economy and workforce was sweet.
“When we save money in regards to a simple thing like tax cuts, we’re able to give that money back to our employees, and also grow our business and allow us to employ more people as well,” Anthony said. “We have employees that started with us five, six years ago. And when we first started, they were making a minimal amount. Now they’re making great money. They’re able to do way more for their families, and it’s just helped them tremendously.”
A novel aspect of this provision is a special 100% deduction for “qualified production property,” like factories used for manufacturing or refining goods. To receive this break, construction must start between January 19, 2025, and January 1, 2029, and the property must be functioning between July 4, 2025, and January 1, 2031.
This part of the bill is focused on boosting U.S. manufacturing. It’s a big deal for industries like semiconductors, cars, or pharmaceuticals, pushing companies to build or renovate factories here at home. It’s like a sidekick to the main bonus depreciation rule, giving a targeted nudge to large-scale production.
The ultimate goal is to encourage businesses to spend on new equipment and factories, jumpstarting the economy. But, some critics point out a catch, and they fear that making bonus depreciation permanent means it can’t be used as a quick fix for future economic slumps. However, organizations like the Tax Foundation find that the benefits of making bonus depreciation permanent far outweigh the negatives critics claim could happen. The Tax Foundation found that 100% bonus depreciation would boost long-term GDP by 1.8% and urged lawmakers to make this provision permanent.
With this tax break now a fixture, businesses are gearing up for a spending spree that could keep the economy humming for years. We hope to see the spurring of new mom-and-pop shops like the Cangiolosi pastry empire. By 2030, we might see a whole new landscape for American industry, thanks to this bold move.