What happens when bonus depreciation reaches 0% in 2027?

Assets placed in service in 2027 will rely solely on standard MACRS depreciation schedules (e.g. 5-year, 7-year) and Section 179 expensing where eligible.

Updated: August 2026 • Verified v1.2

TCJA Bonus Depreciation Phase-Down Schedule Calculator

Finance & MathNew

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Year_Deduction = (Cost * BonusRate) + (Cost * (1 - BonusRate) * MACRS_Rate)

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Understanding Your Results

Displays a multi-year depreciation waterfall table comparing 80% (2023), 60% (2024), 40% (2025), 20% (2026), and 0% (2027), quantifying the tax shield differential.

Practical Guidance & Next Steps

Assets must be placed in service—not merely purchased—by December 31 of the tax year to claim that year's bonus depreciation percentage.

What is this?

A corporate tax planning calculator that models the multi-year phase-down of first-year bonus depreciation under the Tax Cuts and Jobs Act.

How does it work?

1. Enter qualifying asset purchase cost ($). 2. Specify effective marginal corporate tax rate. 3. Compare first-year tax write-offs and cash savings across tax years 2023 through 2027.