AB 922

This bill adopts, beginning in tax year 2023, for state income and franchise tax

purposes, the current federal Internal Revenue Code related to depreciation and

amortization, including provisions related to a depreciation allowance for certain

property, known as bonus depreciation. For state income and franchise tax purposes,

current law generally adopts the federal Internal Revenue Code provisions related

to depreciation and amortization in effect on January 1, 2014. Under the bill,

generally, a taxpayer may take a depreciation deduction equal to 80 percent of the

adjusted basis of qualified property placed in service during tax year 2023, and the

applicable deduction percentage is 60 percent for tax year 2024, 40 percent for tax

year 2025, and 20 percent for tax year 2026. Under current federal law, the bonus

depreciation allowance sunsets for tax year 2027.