Relating To Depreciation of Assets and Net Operating Loss Deduction

SECTION 44-61-1.1

§ 44-61-1.1. Expensing in lieu of depreciation of assets.

(a) For purposes of expensing of assets under chapters 11, 14, and 30 of this title, the expense deduction shall not exceed the sum provided for under the internal revenue code, 26 U.S.C. § 179. In the year that those assets are placed in service, expensing of assets for Rhode Island tax purposes shall be allowed in the same manner as is provided for under the internal revenue code 26 U.S.C. § 179. Any remaining tax basis of the asset purchased shall be depreciated as provided for under the internal revenue service code sections 26 U.S.C. §§ 167 and 168, excluding § 168(k).

(b) The gain resulting from any subsequent disposition of these assets shall be computed using a basis consistent with the Rhode Island expenses and depreciation allowed under subsection (a) of this section.

(c) There is hereby established a depreciation of assets transfer fund for the purpose of reserving sufficient funding for the expensing of assets in accordance with subsection (a). The general assembly may appropriate such amounts to the fund deemed necessary for said purpose.

History of Section.
(P.L. 2003, ch. 376, art. 7, § 4; P.L. 2008, ch. 14, § 1; P.L. 2013, ch. 144, art. 9, § 1; P.L. 2014, ch. 528, § 67.)