The Economic Stimulus Act of 2008 which has passed the house and senate and is waiting for the presidents signature revives “bonus” depreciation by amending §168(k) to substitute “December 31, 2007” for “September 10, 2001” , “January 1, 2008” for “September 11, 2001,” “January 1, 2009” for “January 1, 2005” and “January 1, 2010” for “January 1, 2006.” It also increase the amount of bonus depreciation allowed from 30% to 50%.
As we are all aware when bonus depreciation was originally enacted Missouri decided not to conform to the federal change. This non-conformity caused no end of confusion and complications for 2001 returns and beyond. At that time the MSCPA was passive in the General Assembly on this issue and it passed before most practitioners were aware of what happened.
If the membership of the tax committee agrees we should draft a letter to the Governor and key legislative leaders of both parties recommending that Missouri conform to the federal act this time. We should also ask that the society make conformity a legislative priority of its lobbying efforts this year. If it looks as if Missouri will not conform we should at least make sure that there are no unresolved issues such as not adjusting basis upon disposition. Which would then have to be addressed in later years.
The text of the bill can be found at:
David A. Ruth, CPA
Professional, Tax Operations
Jefferson Wells International