The IRS March 29 released important guidance, Revenue Procedure 2011-26 (the guidance), that clarifies several issues related to 50- and 100-percent bonus depreciation. Bonus depreciation was extended in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the Act), enacted December 17, 2010. The Act extended 50-percent bonus depreciation through December 31, 2012 (December 31, 2013, for longer production period property (LPPP) and certain aircraft). Prior to this modification, bonus depreciation had been set to expire on December 31, 2010 (December 31, 2011, for LPPP and certain aircraft). The Act also enacted new section 168(k)(5), which allows 100-percent bonus depreciation for qualifying property acquired and placed in service after September 8, 2010, and before January 1, 2012 (January 1, 2013, for LPPP and certain aircraft). There are numerous issues surrounding the extended and new bonus depreciation provisions. Some of the issues addressed and clarified in the guidance are discussed in this WNTS Insight.