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Final regulations: Additional first-year depreciation (OIRA review completed)

Final regulations: Additional first-year depreciation

OMB’s Office of Information and Regulatory Affairs (OIRA) completed its review of regulations under section 168(k)—the “bonus depreciation” provision added to the Code by the 2017 tax law (Pub. L. No. 115-97), or the law that is also known as the “Tax Cuts and Jobs Act” (TCJA).

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Under the TCJA provision, qualified property is generally eligible for 100% bonus depreciation if it is acquired and placed in service after September 27, 2017, and before 2023 (with certain long-lived property, transportation property, and aircraft eligible through 2023). Bonus depreciation phases out after 2022 on a set schedule. Both new property and used property are generally eligible for bonus depreciation.

Treasury regulations that are identified as “major” regulations are subject to review by OMB’s OIRA before being issued, pursuant to Executive Order 13771. According to an overnight update on OIRA’s website, review of the following regulations was completed on September 9, 2019:


OIRA’s description of these regulations is:

Revising regulations under 26 U.S.C. 168(k) by adding 1.168(k)-2 (additional first-year depreciation allowance for qualified property) to provide rules for implementing modifications to 26 U.S.C. 168(k), made by the enactment of Pub. L. 115-97 (Tax Cuts and Jobs Act of 2017) section 13201.

A set of related proposed regulations (RIN: 1545-BP32) concerning the additional first-year depreciation allowance completed OIRA review earlier in September 2019. Read TaxNewsFlash

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