30 Percent Special Depreciation Allowance

Section 143.121, RSMo, as revised by Senate Bill 1248 (2002), creates an addition and subtraction modification based on the special depreciation allowance per Section 168 of the Internal Revenue Code (IRC). This modification is used on property that for federal tax purposes the 30 percent special depreciation allowance was used for property purchased on or after July 1, 2002, but before July 1, 2003. If the 30 percent special depreciation allowance is not used on the federal tax return, no modification is required on the Missouri tax return.

The provision includes property purchased on or after July 1, 2002, but before July 1, 2003, in determining if the bonus depreciation must be used as a Missouri modification. Property purchased before July 1, 2002, and after June 30, 2003, does not qualify for the modification.

If you require additional information, please contact the Taxation Division, Post Office Box 3365, Jefferson City, Missouri 65105-3365. Phone 573-751-4541 or e-mail corporate@dor.mo.gov.