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).
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 OIRA, review of the following regulations was completed on September 6, 2019, and with the notation “consistent without change”—
A set of related proposed regulations (RIN: 1545-BO74) concerning the additional first-year depreciation allowance is still pending OIRA review.
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 and used property are generally eligible for bonus depreciation.
The proposed bonus depreciation regulations were released in August 2018. Read a KPMG report providing initial impressions of the proposed regulations: TaxNewsFlash
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