SECTION 4. ELECTION NOT TO

DEDUCT THE KANSAS ADDITIONAL FIRST YEAR DEPRECIATION

.01 In General . A taxpayer may make an election not to deduct the Kansas additional first year depreciation for any class of property that is RA property placed in service during the taxable year. See § 1400N(d)(2)(B)(iv). If a taxpayer makes this election, then the election applies to all RA property that is in the same class of property and placed in service in the same taxable year, and no Kansas additional first year depreciation deduction is allowable for the class of property. The election not to deduct the Kansas additional first year depreciation is made by each person owning RA property (for example, for each member of a consolidated group by the common parent of the group, by the partnership, or by the S corporation). In addition, rules similar to the rules in § 1.168(k)–1(e)(5) (failure to make election), (6) (alternative minimum tax), and (7) (revocation of election) apply for purposes of the election not to deduct the Kansas additional first year depreciation deduction.

.02 Definition of Class of Property . For purposes of this notice, the term “class of property” means:

(1) Except for the property described in this section 4.02(2), (3), (4), (5), and (6), each class of property described in § 168(e) (for example, 5-year property);

(2) Water utility property as defined in § 168(e)(5) and depreciated under § 168;

(3) Computer software as defined in, and depreciated under, § 167(f)(1) and the regulations thereunder;

from claiming the Kansas additional first year depreciation deduction for such property. See § 1400N(d)(5). For purposes of this section 2.07, rules similar to the recapture rules in section 3 of Notice 2008–25, 2008–9 I.R.B. 484, apply.