| Item | Description | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|---|---|---|---|---|---|
| 2.306 | Deduction for Excess First-Year Depreciation
Taxpayers may elect to expense certain business assets purchased during the taxable year. American Taxpayer Relief Act of 2012 (enacted January 1, 2013) increased the benefits, making changes to IRC sec. 179. For tax year 2012, Massachusetts adopted the increased federal amounts provided by IRC sec. 179. The total deduction cannot exceed $500,000; for taxpayers whose investment in eligible assets exceeds $2,000,000 in the year, the $500,000 ceiling is reduced by $1 for each dollar of investment above $2,000,000. Any remaining cost may be depreciated according to MACRS as described in item 2.305. Federal legislation enacted in December of 2015 extended this benefit for calendar years 2015 through 2019. The annual deduction of $500,000 which is available for 2015 will be indexed to inflation in the future. The immediate deduction constitutes a tax expenditure, resulting in a deferral of tax or an interest-free loan. Origin: IRC, S. 179 Estimate: $9.2 |
3.7 | 17.2 | 36.9 | 22.3 | 9.2 |
| ORIGIN | |
| IRC | Federal Internal Revenue Code (26 U.S.C.) |
|---|---|
| M.G.L. | Massachusetts General Laws |
| U.S.C | United States Code |
| ESTIMATES | All estimates are in $ millions. |