US Corporate Tax Rates 2026: Key Insights
Overview of US corporate tax rates in 2026, including federal and state rates, payment terms, and planning considerations.
The exact change
Bonus depreciation and Section 179 expensing allow businesses to accelerate the deduction of capital expenditures. Under the Tax Cuts and Jobs Act phase-down, bonus depreciation was scheduled to fall to 20% in 2026, and Section 179 expensing allowed a maximum deduction of approximately $1,220,000 for 2026, with the deduction phasing out once purchases exceed approximately $3,050,000.
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, permanently restored 100% bonus depreciation for qualifying property acquired and placed in service on or after January 19, 2025, reversing the TCJA phase-down that had been heading toward 0% by 2027. OBBBA also made Section 179 expensing permanent and roughly doubled the caps: for 2026, Section 179 allows full expensing of qualifying equipment up to $2,560,000, with the deduction phasing out once purchases exceed $4,090,000.
Suggested change
Corrected the bonus depreciation rate, which had been described as phasing down to 20%; under the One Big Beautiful Bill Act (OBBBA), 100% bonus depreciation was permanently restored. Also updated the Section 179 deduction cap from $1.22 million/$3.05 million to the current $2.56 million/$4.09 million.
Why this is better
The Depreciation Strategies section still described the pre-OBBBA phase-down (bonus depreciation falling toward 20% and lower Section 179 caps), when the OBBBA (signed July 2025) permanently restored 100% bonus depreciation and roughly doubled the Section 179 caps.
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