IRS Notice: Interim Guidance on Additional First Year Depreciation Deduction (IRC §168(k))

The IRS has published an interim guidance on the additional first-year depreciation deduction under I.R.C. §168(k) as amended by the One Big Beautiful Bill Act. The notice implements permanent 100 percent bonus depreciation for qualified property acquired after Jan. 19, 2025, eliminating previous phase-down requirements and expiration dates. The guidance expands qualified property to include sound recording productions commencing in taxable years ending after July 4, 2025. Taxpayers may elect to claim reduced percentages of 40 percent (60 percent for certain property) instead of 100 percent for property placed in service during the first taxable year ending after Jan. 19, ...