Indiana § 6-3-2-30 - Deduction for qualified production property; recapture

§ 6-3-2-30. Deduction for qualified production property; recapture

Sec. 30. (a) For purposes of this section, "qualified production property" has the meaning provided in Section 168(n)(2) of the Internal Revenue Code.

(b) Except as otherwise provided in this section, if a taxpayer makes an election to claim the special depreciation allowance under Section 168(n) of the Internal Revenue Code with regard to qualified production property used by the taxpayer and placed in service during the current taxable year or a previous taxable year, the taxpayer shall add or subtract the amount required to make the taxpayer's adjusted gross income (as defined in IC 6-3-1-3.5 or IC 6-5.5-1-2) equal to the amount of adjusted gross income determined as if an election had not been made under Section 168(n) of the Internal Revenue Code.

(c) If a taxpayer:

(1) makes an election under Section 168(n) of the Internal Revenue Code to claim the special depreciation allowance under that section; and

(2) the taxpayer is considered to have elected to not claim other special depreciation allowances under Section 168 of the Internal Revenue Code as a result of that election;

the taxpayer will be considered to have made an election to not claim the special depreciation allowances described in subdivision (2) for purposes of computing adjusted gross income under this article or IC 6-5.5.

(d) If a taxpayer is subject to recapture of the special depreciation allowance pursuant to Section 168(n)(5) of the Internal Revenue Code, the taxpayer:

(1) will be considered to have made an election under Section 168(n) of the Internal Revenue Code;

(2) will be considered for purposes of this article and IC 6-5.5 to have disposed of the qualified production property on the date specified in Section 168(n)(5) of the Internal Revenue Code and shall report any income from the property for that taxable year, subject to the modifications required under this section; and

(3) will be required to report any depreciation, gain, or loss from the qualified production property after the recapture of the special depreciation allowance in the same manner as otherwise provided by the Internal Revenue Code.

As added by P.L.128-2026, SEC.10.