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Bonus depreciation overview

TCJA

The
Tax Cuts and Jobs Act
 (TCJA) allows bonus depreciation for
Qualified property
:
  • 100% bonus depreciation, when placed in service between 9/28/2017 and 12/31/2022.
  • 80%, when placed in service between 1/1/2023 and 12/31/2023.
  • 60%, when placed in service between 1/1/2024 and 12/31/2024.
  • 40%, when placed in service between 1/1/2025 and 12/31/2025.
  • 20%, when placed in service between 1/1/2026 and 12/31/2026.

JCWA/JGTRRA/ESA/Recovery Act/ SBJA/TRA 2010 / TRA 2012

The
Job Creation and Worker Assistance Act of 2002
 (JCWA) gave an extra depreciation deduction in the placed-in-service year that's equal to 30% of the adjusted basis of the qualified property placed in service after 9/10/01. This law is reflected (for the most part) in IRS Code section 168(k).
The
Jobs and Growth Tax Relief Reconciliation Act of 2003
 (JGTRRA) amended the bonus depreciation provisions of the Job Creation and Worker Assistance Act of 2002. For qualified property placed in service between 5/6/03 and 12/31/04, the bonus depreciation increased from 30% to 50%.
The
Economic Stimulus Act of 2008
 allows 50% bonus depreciation for qualified property placed in service between 1/1/08 and 12/31/08.
The
American Recovery and Reinvestment Act of 2009
 allows 50% bonus depreciation for qualified property placed in service between 1/1/09 and 12/31/09.
The
Small Business Jobs Act of 2010
 allows 50% bonus depreciation for qualified property placed in service between 1/1/10 and 12/31/10.
The
Tax Relief Act of 2010
 allows 100% bonus depreciation for qualified property placed in service between 9/9/10 and 12/31/11 and 50% bonus depreciation for qualified property placed in service between 1/1/12 and 12/31/12.
The
Tax Relief Act of 2012
 allows 50% bonus depreciation for qualified property placed in service between 1/1/13 and 12/31/13.
The
Tax Relief Act of 2014
 allows 50% bonus depreciation for qualified property placed in service between 1/1/14 and 12/31/14.
The
Protecting Americans from Tax Hikes Act of 2015
 allows 50% bonus depreciation for qualified property placed in service between 1/1/15 and 12/31/17, 40% bonus depreciation for qualified property placed in service between 1/1/18 and 12/31/18, and 30% bonus depreciation for qualified property placed in service between 1/1/19 and 12/31/19.
The
Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018
 allows 100% bonus depreciation for qualified property placed in service between 9/28/2017 and 12/31/2022.

GO zone

The
Gulf Opportunity Zone Tax Relief Act of 2005
 (GO Zone) allows 50% bonus depreciation for qualified Gulf Opportunity Zone property placed in service between 8/28/05 and 12/31/07. This law is reflected (for the most part) in IRS Code section 1400N.

Disaster area relief

The
Tax Extenders and Alternative Minimum Tax Relief Act of 2008
 allows 50% bonus depreciation for qualified Disaster Area property generally placed in service after 12/31/07 for disasters declared after 12/31/07 and occurring before 1/1/10. This law is reflected (for the most part) in IRS Code section 168(n).

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