43-1130. Amortization of the cost of child
care facilities
A. At the election of any corporate taxpayer operating a child care facility for
the purpose of making profit, any expenditure made to purchase, construct, renovate or
remodel child care facilities or equipment shall be allowable as a subtraction ratably
over a period of sixty months, beginning with the month in which the property is placed
in service.
B. At the election of a taxpayer operating a child care facility within this state
primarily for the children of employees of the taxpayer, any expenditure made to acquire,
construct, renovate or remodel the child care facility or equipment is allowable as a
subtraction ratably over a period of twenty-four months beginning with the month in which
the property is placed in service.
C. The subtraction provided by this section shall be in lieu of any allowance for
the exhaustion, wear and tear of such property used in a trade or business or of property
held for the production of income, including a reasonable allowance for obsolescence
pursuant to section 167 or 188 of the internal revenue code.
D. In the case of a partnership, joint venture or other pooled investment or joint
ownership of child care property each participating corporate owner may claim the pro
rata share of the subtraction based on the corporate ownership interest in the
property. The total of the subtractions allowed all such owners of the property shall
not exceed the amount that would have been allowed for a sole owner of the property.
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