Restored 100% Bonus Depreciation & Expanded Section 179 Creates Major Capital Advantage

ATLANTA, GA / ACCESS Newswire / November 6, 2025 / Recent federal legislation has created a major financial advantage for businesses investing in prefabricated and modular construction. With the passage of the One Big Beautiful Bill Act (OBBBA), Section 179 has been expanded, and 100% bonus depreciation has been restored, allowing qualifying modular assets to be fully expensed in the year they are placed in service.

This change eliminates the scheduled phase-down that would have reduced bonus depreciation to 40% in 2025. Under the new law, companies upgrading or expanding their facilities can take full advantage of accelerated depreciation when they choose modular solutions that qualify as Tangible Personal Property (TPP).

Unlike traditional stick-built construction, which is classified as real property and depreciated over 39 years, modular structures can often qualify for 5- or 7-year MACRS treatment. Because Panel Built's prefabricated buildings are designed to be relocatable and non-permanent, they typically meet the criteria for TPP. This allows purchasers to expend the full cost of their building in the first year, freeing up capital and improving cash flow for reinvestment.

"Many people are surprised by the tax advantages our prefabricated buildings can offer. They go in fast, reconfigure easily, and help businesses make the most of their investment," said Elizabeth Satterfield, Manager, Panel Built, Inc.

In addition to 100% bonus depreciation, the OBBBA nearly doubles Section 179 expensing limits. Businesses can now deduct up to $2.5 million, with the phase-out threshold raised to $4 million. These provisions make accelerated depreciation accessible to a wider range of companies planning capital expenditures in 2025 and beyond.

Panel Built's modular mezzanines, offices, guard shacks, and equipment enclosures are commonly recognized as TPP because of their demountable panelized design. Each unit can be relocated, reused, or reconfigured as operational needs change, supporting both flexibility and compliance with federal tax guidelines.

To confirm eligibility and determine the most effective depreciation strategy, businesses should consult a qualified tax professional. Additional guidance is available through IRS Publication 946, How To Depreciate Property.

For more information about Panel Built's prefabricated building systems, visit www.panelbuilt.com.

SOURCE: Panel Built