A BILL TO BE ENTITLED
AN ACT TO ACCELERATE CONFORMITY TO THE FEDERAL BONUS DEPRECIATION DEDUCTION.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑134.6(c)(8) reads as rewritten:
"(c)	Additions. – The following additions to taxable income shall be made in calculating North Carolina taxable income, to the extent each item is not included in taxable income:
. . . 
(8)	The applicable percentage of the amount allowed as a special accelerated depreciation deduction under section 168(k) or section 1400L of the Code, as set out in the table below. In addition, a taxpayer who was allowed a special accelerated depreciation deduction under section 168(k) or section 1400L of the Code in a taxable year beginning before January 1, 2002, and whose North Carolina taxable income in that earlier year reflected that accelerated depreciation deduction must add to federal taxable income in the taxpayer's first taxable year beginning on or after January 1, 2002, an amount equal to the amount of the deduction allowed in the earlier taxable year. These adjustments do not result in a difference in basis of the affected assets for State and federal income tax purposes. The applicable percentage is as follows:
	Taxable Year	Percentage
	2002	100%
	2003	70%
	2004		 and thereafter	0%"
SECTION 2.  G.S. 105‑130.5(a)(15) reads as rewritten:
"(a)	The following additions to federal taxable income shall be made in determining State net income:
…
(15)	The applicable percentage of the amount allowed as a special accelerated depreciation deduction under section 168(k) or section 1400L of the Code, as set out in the table below. In addition, a taxpayer who was allowed a special accelerated depreciation deduction under section 168(k) or section 1400L of the Code in a taxable year beginning before January 1, 2002, and whose North Carolina taxable income in that earlier year reflected that accelerated depreciation deduction must add to federal taxable income in the taxpayer's first taxable year beginning on or after January 1, 2002, an amount equal to the amount of the deduction allowed in the earlier taxable year. These adjustments do not result in a difference in basis of the affected assets for State and federal income tax purposes. The applicable percentage is as follows:
	Taxable Year	Percentage
	2002	100%
	2003	70%
	2004		 and thereafter	0%"
SECTION 3.  This act becomes effective for taxable years beginning on or after January 1, 2004.