The full cost of qualified production property may be written off at once
What the document says“the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 100 percent of the adjusted basis of the qualified production property, and”
The section adds a new subsection (n) to section 168 of the Internal Revenue Code of 1986. Where a taxpayer elects, the depreciation deduction for the year the qualified production property is placed in service includes an allowance equal to 100 percent of its adjusted basis, and the adjusted basis is then reduced by that deduction before working out any further depreciation for that or a later year.
What the document actually says“the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 100 percent of the adjusted basis of the qualified production property, and”
The whole cost may be written off in one year. That is the year the building is put to use. The rate is 100 percent.
The cost is then cut to zero on the books. So no further write-off is left. The firm must elect to use this.
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