While 100% bonus depreciation ended in 2022 for most property, property with longer production periods qualify for a slower statutory phase down than general qualified property.

The 2022 tax year was the last year 100% bonus depreciation was generally available. However, with a phase-down in increments of 20% until 2027, bonus depreciation continues to be significant at 60% for property placed in service in 2024. For property that qualifies as longer production period property (LPPP) placed in service after December 31, 2022, the bonus depreciation phaseout periods are extended by one year (80% for property placed in service in 2024).

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