Chapter
014
2008 -- H 8036 SUBSTITUTE A
Enacted 05/09/08
A N A C T
RELATING TO TAXATION
-- DEPRECIATION OF ASSETS
Introduced By: Representative Steven M. Costantino
Date Introduced: March 12, 2008
It is
enacted by the General Assembly as follows:
SECTION
1. Sections 44-61-1 and 44-61-1.1 of the General Laws in Chapter 44-61
entitled
"Relating To Depreciation of Assets and Net Operating Loss Deduction"
are hereby
amended
to read as follows:
44-61-1.
Depreciation of assets. -- (a) For purposes of depreciation of assets
under
chapters
11, 14 and 30 of this title, the bonus depreciation provided by the Job
Creation and
Worker
Assistance Act of 2002, (P.L. 107-147) (see 26 U.S.C. section 168), and
the Jobs and
Growth
Tax Relief Reconciliation Act of 2003 or any subsequent federal enactment
for federal
tax
purposes shall not be allowed for Rhode Island tax purposes. In the year that
those assets are
placed
in service and in all subsequent years, depreciation for Rhode Island tax
purposes shall be
allowed
on those assets as it would have been computed prior to the enactment of the
Job
Creation
and Worker Assistance Act of 2002.
(b) The gain resulting from any subsequent disposition of these assets shall be
computed
using a
basis consistent with the Rhode Island depreciation allowed under subsection
(a) of this
section.
44-61-1.1.
Expensing in lieu of depreciation of assets. -- (a) For purposes of
expensing
of
assets under chapters 11, 14 and 30 of this title, the expense deduction
shall not exceed twenty-
five
thousand dollars ($25,000) in any taxable year. The additional expensing of assets for federal
tax
purposes under section 179 of the Internal Revenue Code, 26 U.S.C. section 179,
provided by
the Jobs
and Growth Tax Relief Reconciliation Act of 2003 or any subsequent federal
enactment
shall
not be allowed for Rhode Island tax purposes. In the year that those assets are
placed in
service
and in all subsequent years, expenses and depreciation for Rhode Island tax
purposes shall
be
allowed on those assets as it would have been computed prior to the enactment
of the Jobs and
Growth
Tax Relief Reconciliation Act of 2003.
(b) The gain resulting from any subsequent disposition of these assets shall be
computed
using a
basis consistent with the Rhode Island expenses and depreciation allowed under
subsection
(a) of this section.
SECTION
2. Chapter 44-61 of the General Laws entitled "Relating To Depreciation of
Assets
and Net Operating Loss Deduction" is hereby amended by adding thereto the
following
section:
44-61-1.2.
Annual report. -- The department of revenue shall prepare and
annually
submit
to the governor and general assembly by January 31st, a report concerning the
decoupling
from
the federal depreciation changes in the Recovery Rebates and Economic Stimulus
for the
American
People Act of 2008 and other federal acts outlined in this section.
SECTION
3. This act shall take effect upon passage and shall apply to the tax years
beginning
January 1, 2007 and thereafter.
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LC02432/SUB A
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