Agricultural Economics Department


Date of this Version



Cornhusker Economics, May 17, 2023


Copyright © 2023 University of Nebraska-Lincoln


When the Tax Cuts and Jobs Act (TCJA) was passed in 2018, a lot of time and focus was placed on all the things that were changing quickly and the things that were 5-6 years out became back burner problems. Amazingly enough, we are now at the stage of the bill where things are starting to phase out. These changes will start to impact tax returns starting in 2023 and will continue increasing taxable income through 2025. The first change is the phase out of the Bonus depreciation. This law has been on the books since 2001 (there was no Bonus in 2007) and has ranged from 30% - 100% throughout that time. Bonus depreciation is often confused with Section 179 which also allows for the expense of capital assets in the year of purchase but there are some significant differences.