Details of Public Law 119-21, section 70509 , One Big Beautiful Bill Act

The provision removes equipment which uses solar or wind energy to generate electricity as property eligible for the five-year recovery period under the accelerated cost recovery system.

The PITL, generally conforms to the Modified Accelerated Recovery System (MACRS) in IRC section 168 as of the specified date of January 1, 2025, with modifications. As a result, California does not conform to the changes made by this provision.

Under the CTL, California does not conform to federal MACRS depreciation. Instead, the CTL is generally in substantial conformity to the pre-1981 federal asset depreciation range (ADR) rules, which generally allows property to be depreciated based on its useful life. As a result, California does not conform to the changes made by this provision.