Tennessee SB0032 amends the state's excise tax code to align with federal bonus depreciation percentages for certain assets.

Tennessee SB0032 modifies the state's excise tax code to allow taxpayers to deduct a percentage of the cost of depreciable assets in the year they are purchased. For assets bought between January 1, 2023, and January 1, 2026, the deduction matches the federal percentage under the Tax Cuts and Jobs Act of 2017. Starting January 1, 2026, taxpayers can deduct 40% of the asset cost unless the federal government increases the bonus depreciation percentage, in which case the federal percentage applies. This act takes effect immediately upon becoming law.

Tennessee SB0032 amends the state's excise tax code to align with federal bonus depreciation percentages for certain assets.

Tennessee SB0032 modifies the state's excise tax code to allow taxpayers to deduct a percentage of the cost of depreciable assets in the year they are purchased. For assets bought between January 1, 2023, and January 1, 2026, the deduction matches the federal percentage under the Tax Cuts and Jobs Act of 2017. Starting January 1, 2026, taxpayers can deduct 40% of the asset cost unless the federal government increases the bonus depreciation percentage, in which case the federal percentage applies. This act takes effect immediately upon becoming law.