The One Big Beautiful Bill Act: What 100% Bonus Depreciation Means for Miner Businesses

Over a month on from the passing of the One Big Beautiful Bill Act on July 4, 2025, and important tax change items are still just emerging—and proving highly relevant to Bitcoin miners who finally want to take the plunge into mining businesses this year.

Specifically, the Act permanently reinstated 100% bonus depreciation (IRC §168(k)). In layman’s terms, it lets businesses and mining business owners immediately deduct 100% of the entire cost of “eligible business assets” in the year, with no cap—we’ll cover that below. They are placed in service. Before now, the depreciation was reduced by 20% starting in 2023 and set to phase out by 2027. Now, it has been fully restored.

Which miners are eligible?

What are “eligible business assets”? This is where miners come in, and where buying Bitcoin miners now can reap major benefits. To qualify, the asset typically needs to be tangible property with a recovery period of 20 years or less, such as machinery, equipment, vehicles, computers, and certain software. And yes, “equipment” includes ASIC miners.

Note: the incentive only applies to equipment purchased after January 19, 2025—not retroactively applied to equipment purchased beforehand. That means, if you were on the fence about purchasing a miner before, now is a great time to leap.

What About Section 179?

Section 179 is a pre-existing (and entirely separate) provision of the United States Internal Revenue Code that lets businesses deduct the full purchase price of eligible equipment or property in the year it's purchased and placed into service, instead of depreciating it over time. 

However, there is a monetary limit, which The One Big Beautiful Bill Act increased to $2.5M in 2025. Section 179 also only applies to taxable income and cannot be used to create a loss. 

100% bonus depreciation is an entirely separate provision and can create or increase a net loss. That means if your mining business didn’t make money this year, the deduction can make your books show an even bigger loss, which a miner might use to lower taxes on other income or in future years. It also doesn’t have a monetary deduction limit, unlike Section 179.

Section 179 makes more sense for very small operations, where large miners stand to benefit more from bonus depreciation.

Miner Taxes

We already know that miners are subject to sales tax, property tax, income tax, etc. Selling mining rigs and cryptocurrency are both “taxable events”, according to the IRS.

But if you’re unsure about all your federal and state tax laws, always check the IRS website and local tax codes for information on how to report mining earnings, as well as common deductions, like ASIC rigs, servers, cooling, and power infrastructure, and more. 

Disclaimers

Experts do warn that many states don’t acknowledge federal incentives like 100% bonus depreciation, historically. As of the Act’s passing, check your local state tax authorities to gauge whether your state conforms to the incentive.

The Big Beautiful Bill Act isn’t the only recent piece of legislation. The GENIUS Act was recently signed into law, and other packages may alter deductions and recognitions in the future. Always check recent IRS and White House updates for more information, especially as Acts are signed so close together.

What’s Next?

If you live in a state that recognizes the deduction, set in place July 4, 2025, good news--you could get an even bigger deduction on mining equipment, like used ASIC miners.

Right now, BitFuFu has reliable hosted miners like S21+ Hydro., which you can buy-and-host in our facilities, and second-hand S19 XP miners in stock in Oklahoma (which does acknowledge 100% bonus depreciation). These BITMAIN-partner miners come with flexible payment options, on-site inspection--all while supporting U.S.-based mining operations and avoiding import tariff hikes. Learn more: https://www.bitfufu.com/miner. 

Interested? Reach out to [email protected], or our Telegram: http://t.me/bitfufu.