IRS Notice 2026-11: What CPAs Need to Know About Bonus Depreciation Post-OBBBA

On January 14, the Internal Revenue Service released Notice 2026-11, providing much-needed guidance on the implementation of Section 168(k) bonus depreciation following the enactment of the One Big Beautiful Bill Act (OBBBA).

While the OBBBA permanently restored 100% bonus depreciation, Notice 2026-11 clarifies how the IRS intends to administer these changes—confirming continuity with prior rules and resolving confusion around acquisition timing.

Background: Bonus Depreciation Under the OBBBA

The OBBBA permanently extended 100% bonus depreciation for qualifying property acquired and placed in service after January 19, 2025. However, one provision in the statute raised questions for taxpayers and practitioners alike.

Specifically, the law states that property shall not be treated as acquired after the date on which a written binding contract is entered into. This language closely mirrors the acquisition rules introduced under the Tax Cuts and Jobs Act (TCJA), but confirmation was needed to determine whether the same framework would continue to apply.

What Notice 2026-11 Confirms

Notice 2026-11 confirms that the IRS will continue using the existing TCJA regulatory framework under Reg. §1.168(k)-2, with updated effective dates to align with the OBBBA. In short, the rules did not change—only the dates did.

The forthcoming proposed regulations will substitute:

• January 19, 2025 for September 27, 2017
• January 20, 2025 for September 28, 2017

This confirmation provides much-needed certainty for capital planning, cost segregation, and depreciation modeling.
Key Clarifications Included in the Notice

Notice 2026-11 reaffirms several critical elements of the existing bonus depreciation framework, including:

• Definition of acquisition date
  (§1.168(k)-2(b)(5))
• 10% safe harbor for property acquired pursuant to a non-binding contract
  (§1.168(k)-2(b)(5)(v))
• Component election availability for portions of a larger property acquired after January 19, 2025
  (§1.168(k)-2(c))
• Election to claim 40% bonus depreciation instead of 100% for the first taxable year ending after January 19, 2025
  (§168(k)(10))

Together, these clarifications confirm that long-standing planning strategies remain intact under the OBBBA framework.

What’s Still Missing: Qualified Production Property

While Notice 2026-11 provides welcome guidance on Section 168(k), it does not address Qualified Production Property under Section 168(n). Additional IRS regulations are still needed to fully implement this and other OBBBA provisions.

As a result, CPAs should continue to monitor guidance closely when advising clients with manufacturing, production, or large-scale capital investments.

Planning Takeaway for CPAs

Notice 2026-11 delivers clarity where it was most needed, confirming that bonus depreciation planning post-OBBBA follows a familiar, well-understood framework. That certainty allows CPAs to move forward confidently while remaining alert for future guidance in areas still under development.

If you have questions about this notice or how the OBBBA impacts your clients’ depreciation strategies, our team at McGuire Sponsel is here to help. We continue to track IRS developments closely and will share updates as additional guidance is released.