Bonus Depreciation

Last Updated: March 31, 2022

The Issue

The Tax Cuts and Jobs Act passed at the end of 2017 increased bonus depreciation on assets placed into service after September 27, 2017, and before January 1, 2023 to 100%. The rate is scheduled to phase out at the end of 2026. Under current law the rate will be 80% in 2023, 60% in 2024, 40% in 2025. 20% in 2026 after which it will expire without further Congressional action. Bonus Depreciation was originally put into place by the George W. Bush Administration at 50% and was extended multiple times under his administration and that of President Barack Obama prior to the most recent 2017 updates.

Retail Impact

Bonus depreciation helps save convenience retailers thousands of dollars a year by allowing additional expensing of capital investments. This is money store operators are able to reinvest in their businesses and communities.

NACS Position

NACS supported the latest extension of bonus depreciation and will continue to support efforts to make this tax provision permanent.