If you’ve been thinking about replacing aging computers, upgrading restaurant equipment, or investing in new technology before the end of 2026, there’s an important tax change you should know about.
100% bonus depreciation is back—and this time, it’s permanent under current law.
The One Big Beautiful Bill Act, signed into law in July 2025, restored a permanent 100% additional first-year depreciation deduction for qualifying property acquired after January 19, 2025. The IRS and Treasury followed up with additional guidance in January 2026.
In simple terms, certain qualifying business assets may be eligible for a deduction of 100% of their cost in the first year rather than having the deduction spread over several years.
That’s potentially valuable for law firms and franchise restaurant owners planning significant investments.
But there’s an important catch:
A tax deduction isn’t a good reason to buy something your business doesn’t need.
Before you start ordering computers or replacing perfectly good kitchen equipment, let’s look at how the rules work and how to approach year-end purchases strategically.
What Is 100% Bonus Depreciation?
Normally, when a business purchases an asset that will last for several years, the cost isn’t always deducted entirely in the year it was purchased.
Instead, the business generally depreciates the asset over its applicable recovery period.
Bonus depreciation can accelerate that process.
Under the new law, qualifying property acquired and placed in service after January 19, 2025, can generally qualify for a 100% additional first-year depreciation deduction.
Qualifying property can include certain tangible property depreciated under MACRS with a recovery period of 20 years or less, as well as certain computer software and other eligible property. Both new property and certain used property can potentially qualify.
That creates significant planning opportunities—but eligibility depends on the specific asset and circumstances.
Why This Matters in 2026
Before the 2025 legislation, bonus depreciation was scheduled to continue phasing down.
The new law changed that trajectory by restoring the 100% deduction for qualifying property acquired after January 19, 2025.
For businesses planning capital investments anyway, this can make the timing of those investments worth discussing with a tax professional.
And September is an excellent time to start that conversation.
Waiting until the final week of December can create unnecessary pressure around purchasing, delivery, installation, financing, and tax eligibility.
Planning earlier gives you time to make the decision based on what your business actually needs.
What Might Law Firms Consider?
Law firms aren’t typically as equipment-heavy as restaurants, but technology has become a significant investment for many practices.
Potential purchases might include:
- Computers and laptops
- Servers and networking equipment
- Office furniture
- Certain software
- Security and technology infrastructure
- Other qualifying office equipment
Suppose your firm already planned to replace outdated computers or improve its technology infrastructure this year.
Rather than waiting until equipment fails—or rushing to make a purchase in late December—review those needs now.
Ask:
Will this investment improve productivity, security, client service, or profitability?
If the answer is yes, potential depreciation benefits become another factor in the decision—not the sole reason for making it.
What Might Franchise Restaurant Owners Consider?
For franchise restaurant owners, the conversation can be much larger.
Restaurants depend heavily on equipment, and replacement costs can be substantial.
Potential investments could include:
- Ovens and cooking equipment
- Refrigeration equipment
- Freezers
- POS hardware
- Certain drive-thru technology
- Furniture and fixtures
- Other qualifying restaurant equipment
If a refrigerator is nearing the end of its useful life or your POS hardware is slowing down operations, replacing it before year-end might make operational sense while potentially offering tax benefits.
But don’t assume every renovation, building improvement, or equipment purchase automatically qualifies for 100% bonus depreciation.
Different property can be subject to different depreciation rules, which is why classification matters.
“Purchased” and “Placed in Service” Aren’t Always the Same Thing
This is one of the most important concepts to understand when planning year-end purchases.
Simply ordering something by December 31 doesn’t necessarily mean you can claim depreciation for it that year.
Generally, depreciation begins when property is placed in service—meaning it’s ready and available for its intended business use.
Imagine a franchise restaurant owner orders a new piece of kitchen equipment in December, but it isn’t delivered and installed until January.
Or a law firm purchases new technology but doesn’t have it configured and available for use until the following year.
Those timing differences can affect when depreciation begins.
That’s another reason September planning is better than December scrambling.
What About Section 179?
Bonus depreciation isn’t the only accelerated deduction businesses should consider.
Section 179 may allow businesses to elect to expense qualifying property, subject to applicable rules and limitations.
For tax years beginning in 2026, the IRS lists a maximum Section 179 expense deduction of $2.56 million, with the deduction beginning to phase down when qualifying property placed in service exceeds $4.09 million.
So which is better—Section 179 or bonus depreciation?
There isn’t one universal answer.
Your business structure, taxable income, type of property, other asset purchases, and long-term tax strategy can all influence the decision.
That’s why it’s better to coordinate these decisions with your tax professional instead of assuming “100% write-off” automatically means bonus depreciation is your best option.
Don’t Spend $100 Just to Save a Fraction of It in Taxes
This point deserves special attention.
A deduction reduces taxable income. It doesn’t magically make a purchase free.
If you buy equipment your business doesn’t need simply to generate a tax deduction, you’ve still spent real money.
Instead, start with the business case.
Ask:
- Do we actually need this asset?
- Will it improve efficiency or profitability?
- Would we buy it without the tax benefit?
- Can the business comfortably afford it?
- Should we purchase outright or finance it?
- Will it be ready and available for business use before year-end?
- Does our tax professional agree with the proposed treatment?
Tax savings should support a smart business decision—not create one.
Keep Good Records
If you do make significant purchases before year-end, make sure your bookkeeping supports them.
Maintain:
✔ Purchase invoices
✔ Payment records
✔ Asset descriptions
✔ Purchase and delivery dates
✔ Installation documentation when applicable
✔ Dates assets were placed in service
✔ Financing documentation
Your fixed-asset records and depreciation schedules should also be updated accurately.
This documentation will make tax preparation much easier and help support the treatment of the asset if questions arise later.
Start Planning Before Q4 Gets Busy
September is a great time to sit down with your bookkeeping and tax professionals and review your planned capital expenditures for the rest of the year.
For law firms, that could mean creating a technology and equipment plan.
For franchise restaurant owners, it could mean prioritizing equipment replacements across one or multiple locations.
Rather than asking in December:
“What can I buy to lower my taxes?”
Ask now:
“What does my business genuinely need, and how can we structure those investments intelligently?”
That’s a much stronger approach to tax planning.
The Bottom Line
The return of permanent 100% bonus depreciation creates an important opportunity for businesses investing in qualifying property.
But the smartest strategy isn’t to start spending indiscriminately.
It’s to coordinate your operational needs, cash flow, bookkeeping, and tax strategy.
For law firms and franchise restaurant owners, now is the time to review:
- Equipment that genuinely needs replacement
- Technology upgrades already on your roadmap
- Expected year-end profitability
- Cash available for capital investments
- Section 179 versus bonus depreciation considerations
- Timing for placing new assets in service
With several months left in 2026, you have time to make thoughtful decisions rather than rushed year-end purchases.
Planning a Major Business Purchase Before Year-End?
Before you invest in new technology, equipment, or other business assets, make sure you understand how the purchase could affect your financial and tax picture.
Contact us today to schedule a year-end bookkeeping and tax-planning review. We can help you review your financials, organize your fixed-asset records, and coordinate with your tax strategy so you’re making decisions that benefit the business—not simply chasing a deduction.
The best tax strategy isn’t about buying more.
It’s about making smarter decisions with the money your business is already planning to invest.