SECTION 1. PURPOSE

This notice announces that the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) intend to issue proposed regulations (forthcoming proposed regulations) addressing the special depreciation allowance for qualified production property under § 168(n) of the Internal Revenue Code (Code), ¹ as added by § 70307 of Public Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known as the One, Big, Beautiful Bill Act (OBBBA). The Treasury Department and IRS expect the forthcoming proposed regulations to be consistent with the interim guidance provided in sections 3 through 8 of this notice. Section 3 of this notice provides general definitions for purposes of the notice. Section 4 of this notice addresses the definition of qualified production property. Section 5 of this notice addresses the definition of qualified production activity and other related terms. Section 6 of this notice addresses special rules. Section 7 of this notice addresses the time and manner for making an election to designate property as qualified production property. Section 8 of this notice addresses depreciation recapture due to a change in use of qualified production property. Section 9 of this notice addresses the expected applicability date of the forthcoming proposed regulations and the ability of taxpayers to rely on the guidance in this notice.