Treasury and IRS Issue Interim Guidance on 100% Depreciation for Qualified Production Property

On February 20, 2026, the U.S. Department of the Treasury and the Internal Revenue Service released Notice 2026-16, providing interim guidance on a new 100% special depreciation allowance for certain nonresidential real property, depreciable under MACRS, used in manufacturing and other production activities. The guidance implements a provision enacted under the One, Big, Beautiful Bill Act (OBBBA) and allows eligible taxpayers to immediately deduct up to 100% of the unadjusted depreciable basis... By: Krieg DeVault