A business may elect 40 or 60 percent for the first year after January 19, 2025
What the document says“In the case of qualified property placed in service by the taxpayer during the first taxable year ending after January 19, 2025, if the taxpayer elects to have this paragraph apply for such taxable year, paragraph (1)(A) shall be applied--”
The section rewrites section 168(k)(10) of the Internal Revenue Code of 1986 so that a taxpayer may elect, for the first taxable year ending after January 19, 2025, to apply 40 percent in place of 100 percent, or 60 percent for property described in subparagraph (B) or (C) of paragraph (2). A specified plant planted or grafted in that year may likewise be taken at 40 percent.
What the document actually says“In the case of qualified property placed in service by the taxpayer during the first taxable year ending after January 19, 2025, if the taxpayer elects to have this paragraph apply for such taxable year, paragraph (1)(A) shall be applied--”
A business may choose a lower rate. That choice is open for the first tax year ending after January 19, 2025.
The lower rate is 40 percent for most property. It is 60 percent for some longer lived property. Plants may be taken at 40 percent.
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