Indiana DOR Updates Income Tax Bulletin on Depreciation, Expensing, Production Property

The Indiana Department of Revenue (DOR) issued an updated income tax information bulletin, addressing the state’s treatment of bonus depreciation, Section 179 expensing, and qualified production property for Indiana income tax purposes, effective July 4, 2025. This bulletin replaces the March 2023 version and extends Indiana’s longstanding decoupling from federal depreciation allowances to include qualified production property under Senate Enrolled Act 243 (2026). Key provisions include Indiana’s $25,000 cap on Section 179 expensing (versus the unlimited federal allowance), a general disallowance of bonus depreciation with specific exceptions for Section 1031 Income situations, and new requirements that qualified production property be ...