US Corporate Tax Rates 2026: Key Insights

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1. 14 July 2026 · corrected by Emir Baycan

   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.

   Before

   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.

   After

   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.

   Why: 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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