NEWS RELEASE

South Carolina Department of Revenue

Public Affairs Office             Phone (803) 898-5464

Contact: Danny Brazell             Fax (803) 898-5446

                                         Email: brazeld@sctax.org

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FOR IMMEDIATE RELEASE

Feb. 14, 2003

S.C. has not adopted new IRS bonus depreciation

      The South Carolina Department of Revenue has received a number of phone calls from taxpayers regarding the new Internal Revenue Service 30% Bonus Depreciation. Some taxpayers have claimed the depreciation on their property and income tax returns filed with the Department of Revenue. South Carolina has not adopted the bonus depreciation. 

      While South Carolina has conformed to federal income tax laws enacted through Dec. 31, 2001, the Bonus Depreciation of 30% was not enacted until March 2002 and new legislation would be required to adopt it. 

      Taxpayers who claimed the depreciation on income tax returns for federal purposes must add back the 30% for South Carolina reporting on SC1040, line 38. If the South Carolina General Assembly adopts the bonus depreciation during this year's session, taxpayers will have to file an amended return to claim the depreciation.

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