BDE: Big Depreciation Energy Is Back

If you’re a business owner, it’s officially time to step into your BDE era, Big Depreciation Energy. For years, we’ve been watching bonus depreciation slowly phase down, forcing businesses to take smaller deductions and wait longer to recover the cost of big purchases. Thanks to the new One Big Beautiful Bill Act (OBBBA), depreciation just got a serious glow-up, and the tax code is once again rewarding businesses that invest in themselves.

First, let’s talk basics. Depreciation is how the IRS lets you write off the cost of big-ticket items—like equipment, vehicles, machinery, technology, or certain building improvements—over time. Instead of expensing the full cost in year one, you normally spread it out over several years. That’s fine, but it’s not exactly giving cash-flow queen. The slower the deduction, the longer your money is tied up instead of working for you.

OBBBA changes that vibe in a big way. The law restores 100% bonus depreciation for qualifying property you place in service after January 19, 2025, meaning you can often deduct the full cost in the first year instead of dragging it out over its useful life. It also juices up Section 179 by increasing the dollar limits and, for certain qualifying “production” and business property, effectively lets you treat the full cost as an immediate expense instead of slow-dripping it over time. Translation: the tax law is once again very friendly to businesses that are buying equipment, vehicles, software, and making improvements.

So what does Big Depreciation Energy look like in real life? It might be finally upgrading that ancient work truck, buying the equipment you’ve been renting, investing in automation, or remodeling your office or storefront. With stronger Section 179 limits and 100% bonus depreciation back on the table, you may be able to front-load those deductions into the current year, slash your taxable income, and free up cash to reinvest, pay down debt, or build reserves. Used strategically, depreciation becomes less of an accounting formality and more of a growth tool.

Of course, BDE doesn’t mean “buy random stuff for the deduction.” You still need a real business purpose, the right type of property, and smart timing. The rules around Section 179 limits, income restrictions, state conformity, and what qualifies for 100% treatment can get complex fast. That’s where planning comes in. Before you sign that purchase agreement, sit down with a tax pro (hi 👋) and map out a depreciation strategy that fits your goals. With OBBBA on the books, the tax code just handed you Big Depreciation Energy—now it’s your job to use it wisely.