Warren Presses On Republicans’ Bonus Depreciation Tax Break for Giant Corporations

Research shows bonus depreciation tax break is ineffective at boosting economy but will cost hundreds of billions of taxpayer dollars
Two-thirds of this tax break in first Trump term went to corporations making more than $250 million
Text of Letter (PDF)
Washington, D.C. —U.S. Senator Elizabeth Warren (D-Mass.), a member of the Senate Finance Committee, wrote to the nonpartisan Congressional Joint Committee on Taxation (JCT), seeking information about the Big, Beautiful Bill’s permanent extension of 100% bonus depreciation, which previous research has shown is a giveaway to massive corporations. The tax break is a major windfall for giant corporations, by allowing them to write off the cost of new materials or investments immediately, instead of over the lifetime of those assets. JCTestimatesthat the permanent extension of this provision will cost a whopping $362.7 billion over ten years.
100% bonus depreciation was first implemented in 2010 as an intended temporary economic stimulus in the aftermath of the Great Recession, and Congress allowed it to expire the following year. President Trump’s 2017 tax law reinstated the policy through 2022 and “saved nearly $67 billion for 25 of thecorporations that benefited most,” including Google, Facebook, UPS, and Target. Onestudyfound that two-thirds of this tax break went to corporations generating more than $250 million in revenue. Furtherresearchhas shown that “already profitable firms are the most likely users” of bonus depreciation.
“This is ineffective tax policy,”said Senator Warren, pointing to research that found bonus depreciation has “hadlittle effecton overall U.S. business investment” and “[o]verall, didnot appearto be very effective in providing” economic stimulus.
Some research, includingsurveys of corporate executives, even indicates that companies rarely take depreciation tax breaks into account when making investment decisions.
“[This] suggest[s] that these tax breaks largely subsidize investments that would have been made anyway,”said Senator Warren.
The extension of 100% bonus depreciation in the Republican tax law also applies retroactively to costs incurred since January 19, 2025 — six months before the Republican tax law was passed.
“This blatant corporate handout will do nothing to encourage additional investments, as it is impossible to incentivize economic activity that has already happened,”said Senator Warren.
Senator Warren asked JCT to provide, by October 12, 2025:
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