Bonus Depreciation

Last Updated: January 20, 2026

The Issue

The One Big Beautiful Bill (OBBB), signed into law on July 4, 2025, permanently reinstated 100% bonus depreciation for most qualifying business assets.

The 100% bonus depreciation, which allowed companies to fully expense many capital improvements in the year in which they make them, had already started phasing down and was set to expire at the end of 2025.

The OBBB returns bonus depreciation to 100% retroactive to any qualified purchases made after January 19, 2025. That bonus depreciation does not expire, which gives businesses more certainty when planning for future investments.

Retail Impact

Bonus depreciation helps convenience retailers save significant costs by allowing additional expensing of capital investments. This is money retailers are able to reinvest in their businesses and communities.

NACS Position

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