Resident and nonresident individual sole proprietors and other taxpayers must increase federal adjusted gross income for tax year 2005 by adding back 100 percent of the amount of any capital investment that is expensed under section 179 of the Internal Revenue Code of 1986, as amended, that is in excess of $25,000 that is allowed under the Jobs and Growth Tax Relief Reconciliation Act of 2004.

Twenty percent of the total amount of expense added back by this subsection for tax years beginning or deemed to begin on or after January 1, 2003, may be subtracted in the first taxable year beginning or deemed to begin on or after January 1, 2006, under the Internal Revenue Code of 1986, as amended, and twenty percent in each of the next four following tax years.

Nonresident individuals with activities in more than one state are to apportion income in a manner similar to that noted above for the Line 43 bonus depriciation add-back.

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