How does Oklahoma deal with Federal Bonus Depreciation?

Federal bonus depreciation received under the provision of the federal Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

This response is based on the statute as of the 2010 Legislative Session. There is no legislation addressing assets placed in service on or after January 1, 2010; therefore, no adjustment is required for those entities who are claiming the 100% bonus depreciation received under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. 

50% Federal bonus depreciation received under the provision
of the Federal Economic Stimulus Act of 2008 or the Federal
American Recovery and Reinvestment Act of 2009

The Oklahoma Legislature passed SB 2034 in 2008 & SB 318 in 2009 requiring a portion of the bonus depreciation to be added back and then reclaimed in a later year for Oklahoma income tax purposes. Corporations and fiduciaries filing income tax returns with the state of Oklahoma will have to add back 80% of any special bonus depreciation received under provisions of the Federal Economic Stimulus Act of 2008 or the Federal American Recovery and Reinvestment Act or 2009. Any amount added back can be reclaimed in a later year. Twenty-five percent may be subtracted in the first taxable year beginning after the bonus depreciation was added back and twenty-five percent in each of the next three taxable years.

For further information, visit our 50% Bonus Depreciation Information page.

50% Federal bonus depreciation received under the provision
of the Federal Job Creation and Worker Assistant Act of 2003

No adjustment is required for those entities who are claiming the 50% bonus depreciation received under the Jobs and Growth Tax Relief Reconciliation Act of 2003.

30% Federal bonus depreciation received under the provision
of the Federal Job Creation and Worker Assistant Act of 2002

The Oklahoma Legislature passed SB 1415 requiring a portion of the bonus depreciation to be added back and then reclaimed in a later year for Oklahoma income tax purposes. Corporations and fiduciaries filing income tax returns with the state of Oklahoma will have to add back 80% of any special bonus depreciation received under provisions of the federal Job Creation and Worker Assistance Act of 2002. Any amount added back can be reclaimed in a later year. Twenty-five percent may be subtracted in the first taxable year beginning after the bonus depreciation was added back and twenty-five percent in each of the next three taxable years.

For further information, visit our 30% Bonus Depreciation Information page.

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