(a) General. — The qualified investment in property purchased or leased for business expansion is 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 is determined under the following table:
If useful life is:The applicable percentage is:
Less than 4 years 0%
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, is determined as of the date the property is first placed in service or use in this state by the taxpayer, determined in accordance with such rules and requirements the Tax Commissioner may prescribe.
(c) Cost. — For purposes of subsection (a), the cost of each property purchased for business expansion is determined under the following rules:
(1) Trade-ins. — Cost does not include the value of property given in trade or exchange for the property purchased for business expansion.