The Treasury Department and the IRS issued guidance on the expansion of the “bonus depreciation” tax break on capital spending to additional types of property.
The guidance was in a notice (Notice 2026-16) issued Friday. Treasury and the IRS said they plan to issue proposed rules consistent with the notice.
The notice covers a provision of last July’s giant tax-and-spending law that makes “qualified production property,” such as property used in manufacturing or refining, eligible for the bonus depreciation tax break.
Bonus depreciation allows taxpayers to deduct upfront all of their spending on certain capital assets, instead of ...