### Question
How is the "50-percent bonus depreciation property" defined?


### Answer
The term **50-percent bonus depreciation property** is defined in *26 U.S.C. § 168* as follows -

> property described in paragraph (2)(A)(i)—


(i) the original use of which commences with the taxpayer after May 5, 2003,


(ii) which is—


(I) acquired by the taxpayer after May 5, 2003, and before January 1, 2005, but only if no written binding contract for the acquisition was in effect before May 6, 2003, or


(II) acquired by the taxpayer pursuant to a written binding contract which was entered into after May 5, 2003, and before January 1, 2005, and


  

(iii) which is placed in service by the taxpayer before January 1, 2005, or, in the case of property described in paragraph (2)(B) (as modified by subparagraph (C) of this paragraph) or paragraph (2)(C) (as so modified), before January 1, 2006

#### Citation:
  - *26 U.S.C. § 168*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

