Connecticut DRS posts Office of the Commissioner Guidance pertaining to CARES Act

The Connecticut Department of Revenue Services has posted the following Office of the Commissioner Guidance pertaining to the CARES Act:

OCG - 10, Regarding the Connecticut Tax Implications of the CARES Act
On March 27, 2020, Public Law No. 116-136, the federal Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), was signed into law. The Department received the following questions related to the impact of the federal CARES Act on Connecticut tax law. The Department will update this publication as it receives additional questions related to the CARES Act. Any information added after initial publication will include the date on which the information was added. Read more >>

OCG - 11, Regarding Depreciation of Qualified Improvement Property for Connecticut Tax Purposes
Prior to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the depreciable life of qualified improvement property for federal purposes (“QIP”) was 39 years. The CARES Act revised I.R.C. § 168(e) and (g) to provide QIP with a depreciable life of 15 years under the general depreciation system and a depreciable life of 20 years under the alternative depreciation system. The changes made by the CARES Act make QIP eligible for bonus depreciation and are applicable to QIP placed in service after December 31, 2017. 

Revenue Procedure 2020-25 allows a taxpayer to change its depreciation and claim the additional bonus depreciation under I.R.C. § 168 for QIP placed in service by the taxpayer after December 31, 2017, in taxable year 2018, 2019 or 2020, pursuant to revisions to the CARES Act.  Read more >>