Tax Reform and Depreciation

100% Bonus Depreciation

Tax Reform increased bonus depreciation from 50% to 100% for qualified property acquired and placed in service after 9/27/2017 and before 2023

Tax Reform expanded qualified property to include used property purchases not just new property, provided not acquired from a related party or in a carryover basis transaction.

Expanded to include qualified film and television productions, as well as qualified theatrical productions.

Excludes from qualified property, property that is primarily used for (1) electrical energy, water, or sewage disposal services, (2) gas or steam through a local distribution system, or (3) transportation of gas or steam by a pipeline if rates are established by government.

Placed in Service Year Bonus Depreciation Percentage Acquired after 9/27/2017

9/28/2017-12/31/2022 100%

2023 80%

2024 60%

2025 40%

2026 20%

2027 None

2028 and thereafter None