Tennessee HB0477 amends the state's excise tax code to adjust the bonus depreciation deduction for depreciable assets based on federal changes.

Tennessee HB0477 modifies the state's excise tax code to allow taxpayers to deduct a percentage of the cost of depreciable assets as an expense. Initially, taxpayers can deduct 40% of the cost for assets purchased between January 1, 2023, and January 1, 2026. Starting January 1, 2026, if the federal government increases the bonus depreciation percentage above 40%, taxpayers can deduct the new federal percentage for assets purchased after that date. This change aligns Tennessee's tax code with federal adjustments under the Tax Cuts and Jobs Act of 2017.

Tennessee HB0477 amends the state's excise tax code to adjust the bonus depreciation deduction for depreciable assets based on federal changes.

Tennessee HB0477 modifies the state's excise tax code to allow taxpayers to deduct a percentage of the cost of depreciable assets as an expense. Initially, taxpayers can deduct 40% of the cost for assets purchased between January 1, 2023, and January 1, 2026. Starting January 1, 2026, if the federal government increases the bonus depreciation percentage above 40%, taxpayers can deduct the new federal percentage for assets purchased after that date. This change aligns Tennessee's tax code with federal adjustments under the Tax Cuts and Jobs Act of 2017.