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

July 11, 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 Internal Revenue Service 30% Bonus Depreciation enacted in 2002. (The bonus depreciation was increased to 50% this year for property acquired after May 5, 2003, and before January 1, 2005.)  Some taxpayers have claimed the additional depreciation on their South Carolina Business Personal Property tax return or their state income tax return filed with the Department of Revenue. South Carolina has not adopted the Internal Revenue Service code allowing the additional bonus depreciation. 

      While South Carolina has conformed to many federal income tax laws enacted through Dec. 31, 2002, the 30% bonus depreciation was not adopted for South Carolina purposes. Taxpayers who claimed the additional depreciation this year on their state income tax return or their Business Personal Property tax return, form PT-100, or any other property tax return, should file an amended return before July 1, 2004, adding back the depreciation deduction. Following that date, the Department will begin to audit returns for this issue.    

      For additional information, call the Department of Revenue at (803) 898-5000.

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