Interest Capitalization Requirements for Improvements That Constitute Designated Property

Document 2025-19279 is a Final Rule published by the Department of the Treasury in the Federal Register on October 2, 2025, with an effective date of October 2, 2025. This document contains final regulations that, with regard to the interest capitalization requirements for improvements constituting designated property, remove the associated property rule and similar rules from the existing regulations. In addition, this document contains final regulations that modify the definition of "improvement" for purposes of applying those existing regulations. Lastly, this document contains final regulations that modify other rules in those existing regulations in light of the removal of the associated property rule. The final regulations affect taxpayers making improvements to real or tangible personal property that constitute the production of designated property. View the original at https://www.federalregister.gov/documents/2025/10/02/2025-19279/interest-capitalization-requirements-for-improvements-that-constitute-designated-property.

No. Document 2025-19279 is not classified as economically significant under Executive Order 12866. Economically significant rules require OIRA review and are estimated to have impacts of $100 million or more per year.