On January 14, the Internal Revenue Service (IRS) issued interim guidance on the new depreciable property deductions enacted in last year’s tax and spending cuts law. The guidance is in Notice 2026-11.

Notice 2026-11 clarifies how businesses can take the more generous depreciation deductions enacted into law last year. Generally, the new depreciation deduction allows deductibility for the entire cost of newly-acquired qualifying property in the year of acquisition rather than restricting any one year’s deduction to a fraction of the acquisition cost based on the property’s useful life.

Last year’s law made permanent the more generous depreciation deductions first enacted on a temporary basis in the 2017 Tax Cuts and Jobs Act.

Prospects: Expect more guidance on this provision in the near future.

NAIFA Staff Contact: Jayne Fitzgerald – Director –Government Relations, at jfitzgerald@naifa.org.