The full cost of qualified production property may be written off at once
To provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70307, Sec. 70307.
Written by .
The full cost of qualified production property may be written off at once
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70307 in the PDF
What the document says
“the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 100 percent of the adjusted basis of the qualified production property, and”
The section adds a new subsection (n) to section 168 of the Internal Revenue Code of 1986. Where a taxpayer elects, the depreciation deduction for the year the qualified production property is placed in service includes an allowance equal to 100 percent of its adjusted basis, and the adjusted basis is then reduced by that deduction before working out any further depreciation for that or a later year.
What the document actually says
“the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 100 percent of the adjusted basis of the qualified production property, and”
That sentence, in plain words
The whole cost may be written off in one year. That is the year the building is put to use. The rate is 100 percent.
What this is about
The cost is then cut to zero on the books. So no further write-off is left. The firm must elect to use this.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Provide for reconciliation pursuant to title II of H. Con. Res. 14, Public Law 119-21, sec. 70307, 139 Stat. 198 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
This page
“The full cost of qualified production property may be written off at once,” Provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70307, Sec. 70307. Read the Mandate, https://readthemandate.org/pl-119-21/proposal/sec70307-allowance/ (retrieved October 10, 2026).
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