IRS expands 100% bonus depreciation under One, Big, Beautiful Bill, adds sound-recording eligibility
Treasury and the IRS issue Notice 2026-11 establishing a permanent 100% first-year depreciation deduction for qualifying property acquired after Jan 19, 2025 under the One, Big, Beautiful Bill, with interim guidance that taxpayers may rely on existing rules. The notice also outlines elections to claim 40% (60% for some longer production properties or certain aircraft) instead of 100%, to deduct for specified plants, and to treat certain components of larger self-constructed property as eligible; taxpayers may also choose not to deduct for a qualified sound recording production. For sound recordings added by the OBBB, a production may qualify for the deduction if it commences in a taxable year ending after July 4, 2025, with acquisition timing deemed to occur when principal recording commences and placement in service at initial release or broadcast.
