2023-11-28 16:45:17
State website
Conformity status
Partial conformity
Description
Corporate: For tax years beginning, and property placed in service, on or following Jan. 1, 2021, Iowa conforms to the federal treatment of bonus depreciation under I.R.C. § 168(k). For tax years beginning, and property placed in service, before Jan. 1, 2021, Iowa does not conform to bonus depreciation and requires an addition modification for any bonus depreciation taken at the federal level. Former Iowa Code Ann. § 422.35(19A), repealed by 2021 Iowa S.F. 619, effective for tax years beginning, and property placed in service, on or following Jan. 1, 2021; Iowa Admin. Code r. 701–53.22; Iowa Nonconformity: Coronavirus Aid, Relief, and Economic Security Act of 2020; CITN IA 5.3.1.2.
Editors’ note: The 2017 tax act (Pub. L. No. 115-97) expands the definition of qualified property and allows full expensing for property placed in service following Sept. 27, 2017, and reduces the percentage that may be expensed following Dec. 31, 2022 under I.R.C. § 168(k). The CARES Act (Pub. L. No. 116-136) includes a technical correction to treat qualified improvement property as 15-year property eligible for 100% bonus depreciation. I.R.C. § 168(k).
Iowa Conformity Resources
REPORT
Survey of State Tax Departments
ARTICLE
Three Ways to Detangle State Conformity
TOPIC
Property Depreciation Methods: MACRS
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