Bonus depreciation in 2026 for servers and GPUs
100% in the first year for qualified property acquired after January 19, 2025, unless you elect out. Property acquired earlier stays on the phase-down. General information, not tax advice. Talk to your tax advisor about your situation.
Which percentage applies
| Qualified property | Placed in service | Allowance |
|---|---|---|
| Acquired after Jan. 19, 2025 | After Jan. 19, 2025 | 100% unless you elect out |
| Acquired after Jan. 19, 2025 | First tax year ending after Jan. 19, 2025 | 40% if you elect it instead |
| Acquired Sept. 28, 2017 to Jan. 19, 2025 | 2025 | 40% |
| Acquired Sept. 28, 2017 to Jan. 19, 2025 | 2026 | 20% |
| Acquired Sept. 28, 2017 to Jan. 19, 2025 | 2027 or later | None |
Publication 946, chapter 3; Notice 2026-11, sections 2.01 and 2.02. Long production period property and certain aircraft have their own percentages.
The rule
The phase-down ended for new acquisitions. Section 70301 of Public Law 119-21, enacted July 4, 2025, made the allowance a permanent 100% for property acquired after January 19, 2025. In Notice 2026-11 the IRS said taxpayers may generally rely on the existing section 168(k) regulations with the new dates. The MACRS calculator starts at 100%.
“Acquired” means the binding contract date. Under a written binding contract, it is the latest of signing, enforceability, the end of any cancellation period, and any contingency being met. A contract that caps damages at a set amount is not binding for this purpose. Under a non-binding order, the property is acquired when you pay or incur more than 10% of its cost. Server orders signed in 2024 for 2025 or 2026 delivery are the case to check.
Servers qualify. Qualified property is MACRS property with a recovery period of 20 years or less, and computers are 5-year property. Excluded: property placed in service and disposed of in the same year, property that must use the Alternative Depreciation System (including equipment used mostly outside the United States), and any class you elected out of. Buildings are 39-year property.
Used servers can qualify. If you never used them before and did not buy them from a related party or with a carryover basis (IRC 168(k)). Our GPU resale index tracks what used servers sell for.
Electing out is by class, on the return. Attach a statement to a timely filed return for the year the property is placed in service. It covers all property in that class for the year, each owner makes its own, and revoking it takes IRS consent. Separately, for the first tax year ending after January 19, 2025 (2025 for calendar-year owners), you can elect 40% instead of 100% (Notice 2026-11, section 4.03).
Four dates in a server order
| Date | What it decides |
|---|---|
| Contract becomes binding | The acquisition date: before or after January 20, 2025 |
| Payment over 10% of cost | The acquisition date under a non-binding order |
| Ready and available for use | The placed-in-service date, so the tax year |
| Quarter placed in service | The MACRS convention for any basis left after bonus |
The other first-year rule is section 179; the rest are in the accelerated depreciation guides.
Questions about bonus depreciation
- Is bonus depreciation permanent?
- For property acquired after January 19, 2025, the statute no longer has a phase-down or an end date. Notice 2026-11 calls it a permanent 100 percent deduction. Congress can change it again.
- Is bonus depreciation mandatory?
- It applies unless you elect out, for a whole class of property placed in service that year.
Planning to buy GPU servers?
- A call with our CTO about what you need
- Ballpark costs and timelines for your budget
- A straight answer if it’s not a fit
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