Decoupling Matters for Site Selection

July 30, 2009

Mark Arend at Site Selection Online offers advice to readers on where to locate businesses. In his column today, he discusses “decoupling”: a state rejecting the federal depreciation rules and adopting its own. He points to a blog post of ours, stating that “decoupling is unwise, and the blog outlines them succinctly.”

Here’s that blog post.

I’m pleased he emphasizes to his readers that they should include information about whether a state has decoupled or not in advice about site locations.


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Depreciation is a measurement of the “useful life” of a business asset, such as machinery or a factory, to determine the multiyear period over which the cost of that asset can be deducted from taxable income. Instead of allowing businesses to deduct the cost of investments immediately (i.e., full expensing), depreciation requires deductions to be taken over time, reducing their value and discouraging investment.