Applying the One Big Beautiful Bill changes to Depreciation in ProConnect Tax

What's new for tax year 2025

The One Big Beautiful Bill brings many changes to Section 179 and Special Deprecation Allowance. Here are some of the key updates:

• Qualified production property placed in service after July 4, 2025, the construction of which began after January 19, 2025, may be eligible for a 100% special depreciation allowance.
• Section 179 deduction dollar limits have been increased, including the amount for SUV's.
• For certain qualified property placed in service before January 20, 2025, a phase-down of the special depreciation allowance is in place.
• Certain qualified property placed in service after January 19, 2025 may be eligible for 100% special depreciation allowance or you can elect to take 40%.
• Domestic research and experimental expenditures may be amortized over either a 60 month, or 10-year period. Different periods apply for foreign research.

For full details, review the 4562 instructions.

Instructions for entering this into tax year 2025 ProConnect Tax are coming soon.

To elect special depreciation allowance in tax year 2024 for fiscal year business returns:

1. Go to Input Return ⮕ Deductions ⮕ Depreciation.
2. Scroll down to Asset Information.
3. In the OBBBA For Assets after 1/19/2025 section, check either the Initiate special depreciation allowance at 100% checkbox or the Qualified production property under 168(n) for nonresidential property (SDA at 100) checkbox.