TaxGuided
United States IRC sections

Statute section

IRC section 168

Accelerated cost recovery system

Country

United States

Section

168

Updated

2026-05-20

Operative text

Section 168 establishes the modified accelerated cost recovery system (MACRS) using statutory recovery periods and conventions. Section 168(k) allows additional first-year (bonus) depreciation, set at 100 percent under TCJA and phasing down from 80 percent in 2023 to 0 percent in 2027 absent further legislation.

Amendment history

2017-12-22

Pub. L. 115-97

TCJA increased bonus depreciation to 100 percent and extended the rule to used property.

Cross-references

26 U.S.C. 16726 U.S.C. 179

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