CIT-DCP: Corporate Decoupling Adjustment Form (2025)
Delaware · Delaware Division of Revenue · Used for tax years 2025
Delaware Form CIT-DCP calculates the corporate decoupling modification under HB 255. It compares bonus depreciation and special depreciation allowance amounts on the federal return as filed with amounts calculated without the decoupled provisions, and totals the differences for i
Who files this form
Use Form CIT-DCP only if your Delaware return is affected by the HB 255 decoupling provisions. The form covers adjustments for bonus depreciation and the special depreciation allowance for Qualified Production Property.
What you'll need
Have the following information ready to complete the worksheet:
- Your name and TPID.
- Bonus depreciation and special depreciation allowance amounts from your federal return as filed.
- The corresponding federal return amounts calculated without the decoupled provisions.
Common mistakes
- Do not use this form unless your Delaware return is affected by HB 255 decoupling provisions.
- Read the instructions and complete the worksheet, as directed on the form.
- Do not use 100% bonus depreciation for the certain business property covered by the form. The form lists a 40% bonus depreciation rate for tax year 2025.
- Do not use the 100% special depreciation allowance for Qualified Production Property. The form specifies 39-year depreciation instead.
Questions people ask
What bonus depreciation rate does the form list for tax year 2025?
The form lists 40%. It states that Delaware does not allow 100% bonus depreciation for certain business property placed in service as of January 19, 2025.
How is Qualified Production Property treated?
Delaware does not allow the 100% special depreciation allowance for Qualified Production Property. This property continues under the pre-existing Internal Revenue Code provisions using 39-year depreciation.
How do I calculate the adjustment for each depreciation item?
Enter the federal return amount as filed in Column 1 and the federal return amount without the decoupled provisions in Column 2. Subtract Column 2 from Column 1 and enter the difference in Column 3.
Where does the total adjustment go?
Total the amounts in Column 3 to get the Decoupling Modification. Enter that total on this form and include it on Line 4 of Schedule 4B.