For the purposes of computing income tax for tax years beginning after December 31, 2022, a taxpayer may treat specified research or experimental expenditures that are paid or incurred by the taxpayer during the tax year in connection with the taxpayer’s trade or business as expenses that are not chargeable to the capital account.

Such expenditures shall remain allowable as a full and immediate expense deduction in the year in which the expenses are incurred notwithstanding any changes to the federal Internal Revenue Code related to the depreciation of such specified research or experimental expenditures. A taxpayer may alternatively treat the depreciation of such specified research or experimental expenditures in accordance with the schedule provided in 26 USCS Section 174. A taxpayer may make an election whether to take a full and immediate deduction for such expenditures and/or to depreciate the expenditures in accordance with 26 USCS Section 174. Such an election may be made for any tax year if made not later than the time prescribed by law for filing the return for such tax year, including extensions thereof. The method so elected by the taxpayer is irrevocable unless the Commissioner specifically allows a change in the method.

For the purpose of computing income tax for tax years beginning after December 31, 2022, expenditures for business assets that are qualified property or qualified improvement property shall be eligible for one hundred percent (100%) bonus depreciation and may be deducted as an expense incurred by the taxpayer during the tax year during which the property is placed in service, notwithstanding any changes to federal law related to cost recovery beginning on January 1, 2023, or on any other date. A taxpayer may alternatively treat the depreciation of such business assets in accordance with the schedule provided in 26 USCS Section 168. A taxpayer may make an election whether to take a bonus depreciation deduction for such expenditures and/or to depreciate the expenditures in accordance with 26 USCS Section 168. Such an election may be made for any tax year if made not later than the time prescribed by law for filing the return for such tax year, including extensions thereof. The method so elected by the taxpayer is irrevocable unless the Commissioner specifically allows a change in the method.

In any taxable year in which any 26 USCS Section 179 property is placed in service, a taxpayer may elect to treat the cost of such property as an expense which is not chargeable to a capital account, and any cost so treated shall be allowed as a deduction for that year. Mississippi’s treatment of the deduction shall conform to the provisions of 26 USCS Section 179 in effect for that year.

“Qualified improvement property” and “specified research or experimental expenditures” have the same definitions as existed on January 1, 2021.