The Iowa Senate has passed a bill that would “couple” with federal Section 179 limits for 2010 and 2011, and with federal bonus depreciation for 2011. This means, for 2010 returns, the maximum Section 179 deduction in Iowa would be $500,000, same as on federal returns.
However, the bill has not passed the House yet, so for now, the 2010 Iowa Section 179 deduction remains $134,000. If you own a business and have federal Section 179 deductions in excess of $134,000, you will probably want to wait until this “coupling” bill passes and gets enacted before filing your Iowa tax return.
SEE THIS DINESEN TAX TIMES STORY FOR AN UPDATE ON THIS STORY.