Corporate: For tax years beginning, and property placed in service, on or after 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 § 422.35(19A), repealed by 2021 Iowa S.F. 619, effective for tax years beginning, and property placed in service, on or after Jan. 1, 2021; Iowa Admin. Code r. 701–53.22; Iowa Nonconformity: Coronavirus Aid, Relief, and Economic Security Act of 2020; CITN IA 220.127.116.11.
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 after Sept. 27, 2017, and reduces the percentage that may be expensed after 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
Survey of State Tax Departments
Three Ways to Detangle State Conformity
Property Depreciation Methods: MACRS