| DEDUCTION |
DESCRIPTION |
AVAILABILITY |
| Increased Section 179 Deduction |
Allows businesses to claim increased Section 179 deduction (up to $100,000 in additional
expensing increasing to $35,000 for property acquired after December 31, 2001) if the
business qualifies as a RC business. Can be claimed on certain depreciable property
such as equipment and machinery. |
Can be used only within the EZ/RC area. |
| Commercial Revitalization Deduction |
Deduction of either one-half of qualified revitalization expenditures (QREs) in the first
year a building is placed in service or all of the QREs on a ratable basis over 10 years
if QREs have been allocated to revitalization of a commercial building located in an RC. |
Available in RC area for buildings placed in service after December 31, 2001 and before January
1, 2010. Kentucky may allocate up to $12 million in deductions (not more than $10 million per
project) for each year (2002-2009). Business does not have to be a RC business. |
| Environmental Cleanup Cost Deduction (Brownfields) |
Businesses can elect to deduct qualified cleanup costs of hazardous substances in certain areas
(brownfields) in the tax year the business pays or incurs the costs. |
Property is not required to be located in an RC. Needs certification from the Kentucky Cabinet
for Environmental Protection. Includes costs paid or incurred prior to January 1, 2004.
Business does not have to be a RC business. |
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