Notice 2026-16, page 685.

This notice announces forthcoming proposed regulations under § 168(n) of the Internal Revenue Code, as added by Public Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known as the One, Big, Beautiful Bill Act, that will include rules similar to the interim guidance provided in this notice regarding the application of the special depreciation allowance for qualified production property. Specifically, the interim guidance: (i) provides guidance addressing the definition of “qualified production property”; (ii) provides guidance addressing the definition of “qualified production activity” and related terms; (iii) provides guidance addressing relevant special rules; (iv) provides the procedures for making an election to designate eligible property as qualified production property; and (v) provides guidance addressing depreciation recapture due to a change in use of qualified production property.