Governor Kim Reynolds recently signed into law Senate File 619 relating to a multitude of state and local tax issues. Included within this law is the retroactive applicability of Federal Bonus Depreciation rules for qualified assets placed into service on or after January 1, 2021. Additionally, the State of Iowa will remain decoupled from the limitations on business interest expense deductions under IRC §163(j).

KBKG Insight:
The change between bonus applicability prior to 2021 can create an incorrect computation if the taxpayer does not formally elect out of bonus depreciation.

The applicability of bonus depreciation to both new and previously used property can make a cost segregation study even more beneficial for a taxpayer. Our Midwest team is here to help qualify and quantify your opportunity.

» View the entire Iowa SF619

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

» Download KBKG Tax Insight: Iowa Now Conforms to IRC §168(k)

About the Author

Lester CookLester Cook, CCSP – Principal
Lester has nearly 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