(a) Section 179(b)(1) of the Internal Revenue Code, relating to dollar limitation, shall not apply and in lieu thereof, the aggregate cost which may be taken into account under Section 179(a) of the Internal Revenue Code for any taxable year shall not exceed twenty-five thousand dollars ($25,000).
(b) Section 179(b)(2) of the Internal Revenue Code, relating to reduction in limitation, does not apply and in lieu thereof, the limitation under subdivision (a) for any taxable year shall be reduced, but not to below zero, by the amount by which the cost of Section 179 property, as defined in Section 179(d)(1) of the Internal Revenue Code, except as otherwise provided, placed in service during the taxable year exceeds two hundred thousand dollars ($200,000).
(c) Section 179 of the Internal Revenue Code is modified to provide that the “aggregate amount disallowed” referred to in Section 179(b)(3)(B) of the Internal Revenue Code shall be computed under this part as it read on the date the property generating the amount disallowed was placed in service.
(d) The last sentence in Section 179(c)(2) of the Internal Revenue Code, relating to election irrevocable, does not apply.
(e) Section 179(d)(1)(A)(ii) of the Internal Revenue Code does not apply.
(f) Section 179(e) of the Internal Revenue Code, relating to special rules for qualified disaster assistance property, does not apply.
(Amended by Stats. 2016, Ch. 86, Sec. 278. (SB 1171) Effective January 1, 2017.)
Last modified: October 25, 2018