-
What’s Happening: On May 22, 2025, the House passed the “One Big Beautiful Bill,” reinstating 100% bonus depreciation for qualified property (e.g., equipment, leasehold improvements) from January 20, 2025, to December 31, 2029. Other provisions include a permanent Section 199A deduction and a $40,000 SALT cap.
-
Why It Matters for NNN: Immediate deductions lower taxable income, boosting cash flow for retail and industrial net-lease investors. For example, a $500,000 improvement could save $185,000 in taxes (37% rate). However, the bill’s $3.3–$4.0T deficit may push Treasury yields higher, raising cap rates.
-
Strategy: Accelerate 2025 capital investments to leverage bonus depreciation. Use cost segregation studies to maximize depreciable assets. Secure fixed-rate loans to hedge yield spikes. Posts on X highlight investor excitement, with some predicting a deal surge.
