Treasury, IRS Issue Guidance on Bonus Depreciation Tax Break (1)

The IRS and the Treasury Department issued guidance to implement the “bonus depreciation” tax break on capital spending that was enacted last July as part of the GOP’s big tax-and-spending bill.

A notice (Notice 2026-11) indicating that Treasury and the IRS plan to propose regulations under Section 168(k) was released Wednesday.

The new bonus-depreciation provision allows taxpayers to deduct upfront all of their spending on certain capital assets, instead of having to spread the deductions over the property’s useful life. That’s intended to encourage business investment by allowing companies to speed up the tax benefits they receive from ...