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).
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
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.