Does the 50% bonus depreciation apply in Nebraska, Kansas, Missouri, Iowa, & Illinois?
I am a CPA in the midwest and I can tell you that Missouri, Kansas, and Nebraska all follow the 50% bonus depreciation rules enacted the the 2008 Stimulus Act. Iowa does not allow the 50% bonus depreciation and it has to be added back as a state adjustment. Illinois has a special computation where they allow 42.9% of the bonus depreciation deduction. They have their own 4562 that calculates the state depreciation. They treat it the exact same way they did in 2001. Arkansas also does not follow the 50% bonus depreciation. As far as other states go, most of the ones on the east coast do not allow the 50% bonus depreciation, and some states have not decided or published if they are going to follow the federal rules.
