Alabama conforms to federal bonus depreciation rules but imposes specific restrictions for property acquired after December 31, 2007, and placed in service before January 1, 2009 (Ala. Code § 40-18-33). While federal updates, such as the 2017 Tax Act and the CARES Act, expanded bonus depreciation eligibility—particularly for qualified improvement property—Alabama’s state-specific rules require careful consideration to optimize tax strategies for property owners.
office buildingIn Service 2022
A office building purchased for $1,000,000 in Alabama
Purchase Price
$1,000,000
Land Value
$182,216
18.2% of total
Year In Service
2022
Tax Savings
$126,453
12.6% of purchase
Savings Impact12.6%
