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IOWA ISSUES NEW DEPRECIATION FORM TO REFLECT SPECIAL SESSION CHANGES

September 08, 2004

An email issued today by the Iowa Department of Revenue:

   In a special session held in September 
   2004, the Iowa legislature passed 
   legislation to couple with the 
   additional 50% first-year depreciation 
   allowance (bonus depreciation) for 
   assets placed in service after May 5, 
   2003, but before January 1, 2005. In 
   addition, this law also coupled with 
   the increase in Section 179 expensing 
   allowance from $25,000 to $100,000 for 
   tax years beginning on or after January 
   1, 2003. These provisions were provided 
   in the federal Jobs and Growth Tax 
   Relief Reconciliation Act of 2003.

   Previously, the Iowa legislature had 
   decided not to adopt these provisions 
   in Iowa law. For taxpayers who have 
   filed a tax return which reflected 
   either the disallowance of 50% bonus 
   depreciation or the disallowance of 
   the increased Section 179 expensing, 
   amended returns must be filed to 
   reflect this change. 

   Iowa continues to decouple with the 
   30% bonus depreciation provision set  
   forth in the federal Job Creation and 
   Worker Assistance Act of 2002. Form 
   IA4562A will still need to be filed 
   for any assets placed in service after 
   September 10, 2001 but before May 6, 
   2003 to account for the difference in 
   depreciation.

   Form 2003 IA4562A has been updated to 
   reflect this change. 

   2003 Line 14 online Expanded 
   Instructions

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