Section 11 Bonus Depreciation Addback

• Library: Tax Law 2009

Section 143.121.2(c), RSMo Supp. 2007, was added to the law by S.B. 1248, Laws 2002, effective June 19, 2002. The Missouri legislature added this subdivision in response to changes in the federal law enacted by the Congress in 2002. Because the calculation of Missouri corporation taxable income begins with federal taxable income, any increase in the amounts deductible on a federal income tax return reduces Missouri income tax liability. S.B. 1248’s amendment to § 143.121 was intended to reduce the impact of the federal change on Missouri’s tax receipts.

Under the Job Creation and Worker Assistance Act of 2002,
Pub. L. No. 107-147, 116 Stat. 21, the federal government created a “bonus” depreciation...