Back on June 17, 2021, Governor J.B. Pritzker signed into law SB2017, the state’s FY 2022 budget legislation. Among many other noteworthy items within that piece of legislation, Illinois officially decouples from federal bonus depreciation for tax years ending on or after December 31, 2021. Historically, the State of Illinois has decoupled from bonus depreciation in years where the federal bonus depreciation rates were not 100%.

KBKG Insight:
A cost segregation study can help recoup some of the tax deduction loss that the mid-year change in bonus applicability created.

Cost segregation is a commonly used strategic tax planning tool that allows taxpayers who have constructed, purchased, expanded or remodeled any kind of real estate to increase cash flow by accelerating deductions related to specific components of the property. Our Midwest team is here to help qualify and quantify your opportunity.

» View the entire SB2017

Action Steps:
To find out how a Cost Segregation Study will benefit you, visit:

» Download KBKG Tax Insight: Illinois Decouples from Bonus Depreciation for 2021 Tax Year and Forward

About the Author

Lester CookLester Cook, CCSP – Principal
Lester has over 20 years of experience in the tax specialty service industry. He is a Principal and leads KBKG’s Fixed Asset Review Practice from our Chicago, IL office. Throughout his career, Lester has completed cost segregation analyses on thousands of properties ranging from office space leasehold improvements to multi-billion dollar industrial complexes. » Full Bio