(a) General. — The qualified investment in property purchased or leased for business expansion shall be the applicable percentage of the cost of each property purchased or leased for the purpose of business expansion which is placed in service or use in this state by the taxpayer during the taxable year.
(b) Applicable percentage. — For the purpose of subsection (a), the applicable percentage of any property shall be determined under the following table:
If useful life is: The applicable percentage is:
4 years or more but less than 6 years ……………33 1/3%
6 years or more but less than 8 years ……………66 2/3%
8 years or more ………………………………….100%
The useful life of any property, for purposes of this section, shall be determined as of the date such property is first placed in service or use in this state by the taxpayer, determined in accordance with federal income tax law.
(c) Cost. — For purposes of subsection (a), the cost of each property purchased for business expansion shall be determined under the following rules:
(1) Trade-ins. — Cost shall not include the value of property given in trade or exchange for the property purchased for business expansion.