Governor Deval Patrick's Budget Recommendation - House 1 Fiscal Year 2014

2.305 -Modified Accelerated Cost Recovery System for Equipment


Item DescriptionFY2012 FY2013 FY2014
2.305 Modified Accelerated Cost Recovery System for Equipment
For depreciable tangible personal property placed in service after 1980, capital costs may be recovered using the Accelerated Cost Recovery System (ACRS), which applies accelerated methods of depreciation over set recovery periods. For property placed in service after 1987, Massachusetts has adopted the Modified Accelerated Cost Recovery System (MACRS), which generally uses double declining balance depreciation over specified periods that are substantially shorter than actual useful lives (200% declining balance for 3-, 5-, 7- and 10-year recovery property and 150% declining balance for 15- and 20-year property). The excess of accelerated depreciation over economic depreciation constitutes a tax expenditure, resulting in a deferral of tax or an interest-free loan.

For the past decade, the federal government has allowed "bonus depreciation" which further accelerates depreciation for assets placed in service in certain years. However, Massachusetts does not follow it.

For a more detailed description, refer to the description for item 2.301

Origin:  IRC, S. 168
Estimate:  $190.6
87.3 142.5 190.6

Key:

ORIGIN  
IRCFederal Internal Revenue Code (26 U.S.C.)
M.G.L. Massachusetts General Laws
U.S.C United States Code
ESTIMATES All estimates are in $ millions.


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