Proposed 2025 Tax Bill Could Unlock 100% Write-Offs for Manufacturing Properties
There’s exciting news out of Washington that commercial property owners and real estate professionals should be paying attention to—especially if manufacturing is involved.
The House recently passed a sweeping new tax bill that includes reinstating 100% bonus depreciation for qualified property. While this bonus depreciation primarily applies to machinery and equipment, there's a growing focus on “qualified production property”—which could include certain real estate used in manufacturing.
If this language makes it into law, manufacturing businesses could potentially write off the full cost of eligible assets—and even qualifying building components—in year one.
Why This Matters:
Businesses may accelerate tax deductions tied to large capital investments.
Cost segregation studies will be more valuable than ever, helping reclassify parts of the building into shorter depreciation lives, now with potential to be fully expensed.
Real estate agents working with industrial clients can position this as a major incentive to buy or renovate before the window closes.
Currently, the bill is under review by the Senate, and while changes may come, this trend toward expanded incentives for production-related property is gaining traction.
What You Can Do Now:
Review any planned purchases or renovations for 2025 and beyond.
Identify clients or listings related to manufacturing or production and educate them on the upcoming opportunity.
Consider a free cost segregation estimate if you own—or are selling—a property that may qualify.
As always, we’re here to help you or your clients evaluate these opportunities and take proactive steps to maximize tax benefits.
📩 Reach out if you’d like to discuss how this might apply to your property or client’s situation.
Chase Pfohl
National Account Executive
Direct: 855-620-2774
Email: [email protected]
