Bonus Depreciation. Notwithstanding anything to the contrary herein, Distributing shall be entitled, in its sole discretion, to elect whether SpinCo shall take “bonus depreciation” described in Section 168(k) of the Code for any federal income tax purposes for any tax year of SpinCo that includes the Deconsolidation Date (or the day following the Deconsolidation Date), irrespective of whether Distributing is responsible for filing the Tax Return to which such election relates under this Agreement.
Bonus Depreciation. If Agilent elects to take bonus depreciation under Section 168(k) of the Code for the Agilent Federal Consolidated Income Tax Return for its tax year ending October 31st, 2014, Keysight shall agree to elect such bonus depreciation for the Keysight Federal Consolidated Income Tax Return for the same tax year and the following tax year.
Bonus Depreciation. Any written binding contract entered into by Project Company, NHC or any other First Wind Subsidiary to manufacture, construct or produce the Bonus Depreciation Property was signed before fabrication or construction of the property commenced. To the Knowledge of NHC, after due inquiry, no manufacturing, construction or production of such Bonus Depreciation Property began prior to January 1, 2008.
Bonus Depreciation. The Parties agree to incorporate the impact of 2012 29 and 2013 bonus depreciation in the calculation of regulated income taxes and 30 deferred taxes in this proceeding. The Parties also agree to include the 31 revenue requirement impact of 2013 bonus depreciation in the Tax 32 Memorandum Account established by Commission Resolution L-411A. The 33 Parties agree to review the balance in this memorandum account, since 34 inception, in Cal Water’s next general rate case. ORA noted that, in the 35 current proceeding, the balance of the memo account was not identified by 36 the company. As such, ORA was not able to verify the balance in this memo 37 account. During the settlement process, Cal Water provided work papers 38 associated with the bonus tax depreciation component of the 2011 tax return, 39 which was not inclusive of all tax effects of the 2010 Tax Law or the items 1 required to be tracked in the account (e.g., revenue requirement impact) per 2 Resolution L-411A.
Bonus Depreciation. Illinois base income starts with "taxable income properly reportable for federal income tax purposes for the taxable year.” Taxpayers must add back an amount equal to the bonus depreciation deduction taken on the taxpayer's federal income tax return for the tax year under IRC section 168(k), regardless of the percentage of “bonus” that is applied. In tax years when 30% or 50% bonus depreciation was allowed at the federal level, an additional subtraction modification for depreciation was then allowed as a reduction on the Illinois return. If an asset was disposed of or reached its last year of federal depreciation, then all prior modifications made for that asset were reversed. Because the first depreciable year of an asset is also its final depreciable year under 100% bonus depreciation, Illinois effectively did not require a modification for assets on which 100% federal bonus depreciation was taken. In other words, Illinois conformed to 100% bonus depreciation. The budget agreement legislation would retain an addback modification for the bonus depreciation deduction under IRC section 168(k) that was taken on the taxpayer's federal income tax return for the tax year. However, for tax years ending on or after December 31, 2021, the subtraction modification for assets on which 100% bonus depreciation was taken would be adjusted to equal the depreciation that would have been computed for federal purposes had the taxpayer elected out of bonus depreciation under IRC section 168(k)(7). In addition, if bonus depreciation is taken on an asset at a percentage other than 30%, 50% or 100%, then the budget agreement legislation provides that a taxpayer would take the amount of federal depreciation permitted that is not the bonus depreciation component plus would take a subtraction modification of that federal depreciation amount multiplied by a ratio that adjusts with the federal bonus percentage taken on the asset. This change would apply to all categories of taxpayers, including individual and corporate taxpayers. Reinstate franchise tax Under existing law, the Illinois franchise tax imposed on paid-in capital is to be fully phased out by gradually increasing the amount of tax liability considered exempt through 2024. The current phase-out level, effective during 2021, exempts the first $1,000 of franchise tax liability, with larger exemption amounts scheduled for future years until the full exemption from tax would apply starting in 2024. This phase-out schedule wo...
