Section 50 IAC 5.1-6-7 - ValuationAuthority: IC 6-1.1-8-42; IC 6-1.1-31-1
Affected: IC 6-1.1-8-26
Sec. 7.
(a) Except as provided in section 9 of this rule, the value of depreciable personal property is computed by subtracting federal depreciation from the adjusted cost of the depreciable personal property. The value of depreciable personal property is the depreciated value of the depreciable personal property as computed for federal income tax purposes.(b) Depreciation shall be computed using the method or methods of depreciation that the public utility company has used for federal income tax purposes for that property. If depreciable personal property is acquired prior to the establishment of the first reporting year for federal income tax purposes, depreciation shall be computed in the same manner as the public utility contemplates using for federal income tax purposes.(c) The amount of depreciation computed in subsection (b) shall be increased by any expense election deduction (Section 179 of the Internal Revenue Code of 1986) or investment tax credit claimed on the property by the public utility company for federal income tax purposes.Department of Local Government Finance; 50 IAC 5.1-6-7; filed Dec 15, 1993, 5:00 p.m.: 17 IR 961; reinstated by IC 6-1.1-8-44, eff Jul 1, 2003