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2010 Bonus Depreciation bill passes Iowa House

March 02, 2011

The Iowa House of Representatives last night voted to allow bonus depreciation and $500,000 of Section 179 depreciation on Iowa tax returns effective for 2010.

The Senate-passed version of S. 209 increases the Iowa Section 179 limit to $500,000 effective for 2010, but only allows bonus depreciation starting in 2011. It's not clear which bonus depreciation effective date will emerge when the two houses reconcile their versions of the bill.

This is a quandary for businesses wanting to get their 2010 returns filed. As I wrote at IowaBiz.com yesterday, it may be wise to wait a little longer before filing Iowa returns when you have bonus depreciation or over $134,000 in Section 179 deductions on your federal filings.

Many taxpayers have already filed for 2010. The House-Senate conference should add a provision to S. 209 to allow any taxpayers who have already filed under the old rules to continue to depreciate their 2010 assets that way so they don't have to amend their already-filed 2010 returns.

Tags: bonus depreciation.Iowa bonus depreciation.Iowa tax law.Iowa tax policy.Section 179.