ET-2 - Federal Bonus Depreciation is not Deducted for Excise Tax

Tennessee has permanently decoupled from Internal Revenue Code (IRC) Section 168(k) commonly called “bonus depreciation.”  Any asset depreciated federally using “bonus” depreciation must be recalculated for state purposes using a depreciation method available prior to the 2002 enactment of “bonus” depreciation.

Reference: Tenn. Code Ann. § 67-4-2006(b)(1)(H).