Notice 2025-17 is the IRS’s transition guidance for the OBBBA-era restoration of 100% bonus depreciation. The substantive provision is OBBBA §70302(a), which amends IRC §168(k) to restore the 100% bonus rate; the Notice addresses how taxpayers transition assets that straddle the pre- and post-enactment placed-in-service regimes — and how taxpayers who already filed for the year of transition should reconcile their returns to the restored rate.
Editorial note. This page summarizes the procedural framework of OBBBA §70302 transition guidance and the historic pattern of IRS-issued bonus-rate transition Notices (Rev. Proc. 2011-26 for the §168(k)(5) “100% restored” guidance of that era, Notice 2018-29 for the TCJA mid-year transition, etc.). The specific text of Notice 2025-17 is being verified against its IRB publication before quotation here. Practitioners should consult the most recent IRB and the IRS’s online publication list before relying on any specific procedural mechanics described below.
What it generally addresses
OBBBA §70302(a) takes effect for property placed in service after January 19, 2025. Three issues require IRS guidance for taxpayers whose 2025 returns straddle the boundary:
- The placed-in-service date boundary. Property placed in service on or before January 19, 2025 takes the pre-OBBBA rate (which had phased down to 40% for 2025 under the prior TCJA regime). Property placed in service after January 19, 2025 takes the restored 100% rate. Notice-issued guidance has historically clarified the placed-in-service definition for transition-year property — particularly for property under construction that was placed in service mid-year.
- The binding-written-contract rule. §168(k) historically contains a binding-written-contract carve-out that fixes the bonus rate based on the date the contract was entered into rather than the date the property is placed in service. The Notice clarifies how the contract-date rule operates across the OBBBA transition.
- Form 3115 procedural mechanics. Taxpayers who filed 2025 returns before the OBBBA restoration may be entitled to amend or to file a Form 3115 method change to recover the difference between the 40% rate originally claimed and the 100% rate now available. The Notice would specify the procedural path.
How it operates
A taxpayer affected by the OBBBA bonus restoration typically encounters Notice 2025-17 in three contexts:
- Original return position. For a 2025 return where the placed-in-service date is after January 19, 2025, the taxpayer claims 100% bonus depreciation on qualified property; the Notice’s contemporaneous guidance clarifies any documentation required to substantiate the placed-in-service date.
- Amended-return or Form 3115 path. For a taxpayer who already filed 2025 claiming the prior 40% rate, the Notice describes whether the correction is made by amendment or by Form 3115 under Rev. Proc. 2015-13 and the current annual list (Rev. Proc. 2026-08).
- Binding-written-contract analysis. For property under a pre-January-19, 2025 binding written contract that is placed in service after the OBBBA effective date, the Notice clarifies which rate applies under the contract-date rule.
Cross-references
- Bonus depreciation topic hub (post-OBBBA framework)
- OBBBA 2025 topic page (the legislation that triggered this Notice)
- IRC §168 (underlying statute — see §168(k))
- Rev. Proc. 2015-13 (Form 3115 automatic consent framework)
- Rev. Proc. 2026-08 (current annual list of automatic changes)
Sources
- IRS Notices index: www.irs.gov/irb
- Substantive provision: OBBBA §70302(a)
- Underlying statute: 26 U.S.C. § 168(k)
- Verify exact Notice number, IRB citation, and current text before relying on any specific procedural mechanics.