(a) In general

Section 56A(c)(13) of the Internal Revenue Code of 1986 is amended to read as follows:

(13) Depreciation

(A) In general

Adjusted financial statement income shall be—

(i)

reduced by—

(I)

depreciation deductions allowed under section 167 with respect to property to which section 168 applies to the extent of the amount allowed as deductions in computing taxable income for the taxable year, and

(II)

applicable public utility repair and maintenance deductions allowed under section 162 with respect to property to which section 168 applies to the extent of the amount allowed as deductions in computing taxable income for the taxable year, and

(ii)

appropriately adjusted—

(I)

to disregard any amount of depreciation expense that is taken into account on the taxpayer’s applicable financial statement with respect to such property, and

(II)

to take into account any other item specified by the Secretary in order to provide that such property is accounted for in the same manner as it is accounted for under this chapter.

(B) Applicable public utility repair and maintenance deductions

For purposes of this paragraph, the term applicable public utility repair and maintenance deductions means repair and maintenance deductions allowed to a taxpayer with respect to expenditures which are—

(i)

incurred by such taxpayer with respect to any property described in section 168(i)(10) which is owned by such taxpayer, and

(ii)

taken into account as a depreciation expense on the taxpayer’s applicable financial statement with respect to such property.

(b) Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2024.