From bigger write-offs to faster deductions, changes to federal tax law could put more money back into the pockets of business owners. That was the focus of the Fresno Chamber of Commerce’s Small Business University webinar on Sept. 10, where attendees learned how to take advantage of the One Big Beautiful Bill (OBBB), signed into law July 4, 2025.
Leading the session, CPA Shelton Autry of Bean Hunt Harris & Company unpacked updates on bonus depreciation, Section 179, and a new deduction for qualified production property — all tools that could help businesses cut costs and invest in growth.
Bonus Depreciation
The OBBB brings back 100% bonus depreciation, a tax incentive that allows businesses to immediately deduct the full cost of certain assets in the year they are placed in service. Normally, companies would spread these deductions out over the useful life of the asset, but bonus depreciation accelerates the process, offering an immediate reduction in taxable income.
Under the OBBB, property acquired and placed in service after Jan. 19, 2025, qualifies for full expensing. To be eligible, an asset must have a useful life of 20 years or less under IRS rules. Buildings themselves do not qualify, but interior improvements, vehicles, and land improvements like paving or lighting typically do.
Section 179
The OBBB updates Section 179 of the tax code, allowing businesses to deduct the full cost of certain assets in the year they are purchased instead of spreading the deduction out over time. Thanks to the new law, the Section 179 deduction limit has doubled to $2.5 million, with the phaseout threshold rising to $4 million. This change gives businesses more room to immediately write off the cost of new equipment, machinery, or property improvements, helping to ease the financial burden of large investments.
Section 179 applies to a wide range of purchases, including equipment, off-the-shelf software, and specific improvements to nonresidential property such as roofing, HVAC, fire protection, and security systems.
Qualified Production Property
The OBBB also introduces a new 100% deduction for qualified production property (QPP), aimed at encouraging investment in manufacturing and production facilities. QPP covers newly constructed nonresidential real property primarily used for producing or refining tangible goods. To qualify, construction must begin after Jan. 19, 2025, and before Jan. 1, 2029. The property must be placed in service before Jan. 1, 2031.
This incentive is designed to ease the upfront costs of large-scale projects like new plants or production infrastructure. While the deduction does not apply to property used for offices, lodging, or functions such as sales, research, or software development, it offers a valuable opportunity for manufacturers to fully expense qualifying construction.
Chamber Educational Opportunities
Chamber webinars are free for members and $20 for nonmembers. To view a calendar of events including upcoming webinars, click here.
If you would like to become a member and take advantage of the Chamber’s educational opportunities, networking events, marketing tools, and other resources that can support your business, click here.
For more updates on Fresno County development and business initiatives, stay connected with the Fresno Chamber of Commerce.
