§ 6-3-1-33 — "Bonus depreciation"

As used in this article, "bonus depreciation"
means an amount equal to that part of any depreciation allowance
allowed in computing the taxpayer's federal adjusted gross income or
federal taxable income that is attributable to the additional first-year
special depreciation allowance (bonus depreciation) for qualified
property allowed under Section 168(k) of the Internal Revenue Code,
including the special depreciation allowance for 50-percent bonus
depreciation property. For taxable years beginning after December 31,
2017, the term does not include any amount of additional first-year
special depreciation allowance under Section 168(k) of the Internal
Revenue Code in the amount of adjusted gross income realized on the
exchange of property that otherwise would have been deferred under
Section 1031 of the Internal Revenue Code in effect on January 1,
2017, if:
(1) the exchange would have been eligible for nonrecognition of
gain or loss under Section 1031 of the Internal Revenue Code in
effect on January 1, 2017;
(2) the exchange is not eligible for nonrecognition of gain or loss
under Section 1031 of the Internal Revenue Code; and
(3) the taxpayer claimed a deduction for the additional first-year
special depreciation allowance under Section 168(k) of the
Internal Revenue Code with regard to the acquired property.
For purposes of this section, if the taxpayer elected to claim a
deduction under Section 179 of the Internal Revenue Code with regard
to an item of acquired property, the adjusted gross income realized on
the exchange must be reduced (but not below zero dollars ($0)) by the
amount of the deduction under Section 179 of the Internal Revenue
Code elected to be claimed on the acquired property.

Legislative History

As added by P.L.105-2003, SEC.3. Amended by P.L.246-2005, SEC.71; P.L.234-2019, SEC.9.