168 Allowance % Field

Use the 168 Allowance % field in Asset Detail to select a 168 Allowance percent that is valid for U.S. Federal tax purposes. Refer to the table below for Bonus Depreciation percentages applicable to years 2017 and later.

Note: The 168 Extra feature allows you to use a 168 Allowance % not valid for federal purposes for assets placed in service in years 2023 and later.

The One Big Beautiful Bill Act (OBBBA) of 2025

Effective January 20, 2025, assets placed in service on or after this date require the 168 Allowance of 100%. The system will automatically apply this percentage to new assets. For existing assets, perform a 168 Allowance Switch to apply the 100% bonus.

Exceptions to the 100% rate for assets placed in service after 1/19/2025:

40% election: For property placed in service between 1/20/2025 and 12/31/2025.
60% election: For Longer Production Period (LPP) and Certain Aircraft (NCA) property placed in service between 1/20/2025 and 12/31/2025.
Reuse and Recycling property remains unchanged with a 50% bonus rate.
Qualified Production Property (QPP): Needs to be placed in service by 12/31/2030. (See Note 3 below the chart.)

See below for details:

Placed in Service Year	Bonus Depreciation Percentage
Placed in Service Year	Qualified Property	Longer Production Period (LPP) and Certain Aircraft (NCA)
Qualified Property Acquired after 01/19/2025 [OBBBA]
1/20/2025 and thereafter	100%¹	100%²
1/20/2025 – 12/31/2028	100%	Qualified Production Property³

Note 1: 40% may be elected in place of 100% for 2025. Use 20% for assets placed in service in 2026 with an existing written contract dated before January 20, 2025.

Note 2: 60% may be elected in place of 100% for 2025.

Note 3: 100% Allowance is available for Qualified Production Property constructed between 1/20/2025 and 12/31/2028 and placed in service by 12/31/2030.

Allowance % Field Defaults:

The 168 Allowance % field is enabled after you select a "Plus 168" depreciation method of MA, MR, AA, or SB. When a 168 Plus depreciation method is selected, the Allowance % field automatically displays the default allowable bonus percentage for the year the asset is placed in service. The calculated amount of the allowance also displays in the 168 Allowance Amount field. Other depreciation percentages can be selected from the field dropdown menu.

100 for property placed in service on or after 1/20/2025
40 for property placed in service between 1/1/2025 and 1/19/2025
60 for property placed in service in 2024
80 for property placed in service in 2023
100 for property placed in service between 9/28/2017 and 12/31/2022
50 for property placed in service after 5/5/2003 and before 9/28/2017

Other 168 Allowance Information

The Tax Cuts and Jobs Act (TCJA) of 2017 [replaced by the OBBBA in 2025] increased the 168 Allowance to 100% for qualifying assets placed in service after 9/27/2017 through 12/31/2022 (12/31/2023 for longer production period assets and certain aircraft) with declining 168 Allowance amounts for years 2023 through 2026.

Certain transition rules applied to assets acquired before 9/28/2017 and placed in service after 9/27/2017 and for taxpayers who opted to apply an allowance of 50% instead of 100% in their first taxable year ending after 9/27/2017.

The Protecting Americans from Tax Hikes (PATH) Act of 2015 extended the 168 Allowance for qualified property until it was replaced by the TCJA in 2018.