Treasury Wants Input on Defining Property for Bonus Depreciation

The Treasury Department and the IRS want public comments on various aspects of the standards under which manufacturing and refining property will be newly eligible for the bonus depreciation tax break on capital spending, a Treasury official said.

Defining what constitutes such “qualified production property” is “a very factual determination that’s going to be very difficult for taxpayers to do,” said Heather Harman, a Treasury tax policy adviser, speaking at the American Bar Association Tax Section’s May meeting in Washington.

Treasury and the IRS issued preliminary guidance in February on making qualified production property eligible for bonus depreciation, and Harman ...