Pennsylvania is requiring taxpayers to add back 100% of the federal bonus depreciation deduction.
The federal Tax Cuts and Jobs Act allows taxpayers to deduct the full cost of certain property placed in service after September 27, 2017. Pennsylvania already required an addback for 50% of the bonus depreciation but it also allowed a subtraction approximating the federal deduction.
Currently, Pennsylvania does not provide for an additional cost recovery mechanism for the property. However, taxpayers can take an additional deduction when the qualified property is sold or disposed of.
Corporation Tax Bulletin 2017-02, Pennsylvania Department of Revenue, December 22, 2017, ¶204-617