Section DP 2 — Income Tax Act 2007: Plant or machinery

DP 2 Plant or machinery When this section applies: first case (1) This section applies when— (a) a person incurs expenditure on acquiring, on or after 1 April 1975, plant or machinery; and (b) the person first uses the plant or machinery on or after 1 April 1975; and (c) the person uses the plant or machinery mainly in developing land in New Zealand for use in a forestry business to be carried on by them on the land. When this section applies: second case (2) This section also applies when— (a) a person carrying on a forestry business on land in New Zealand incurs expenditure on acquiring, on or after 1 April 1975, plant or machinery; and (b) the person first uses the plant or machinery on or after 1 April 1975; and (c) the person uses the plant or machinery mainly in planting or maintaining trees on the land. Deduction (3) The person is allowed a deduction for an amount of depreciation loss for the plant or machinery. Link with subpart DA (4) This section overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply. Defined in this Act: acquire , amount , business , capital limitation , deduction , depreciation loss , forestry business , general limitation , general permission , New Zealand , Compare: 2004 No 35 s DP 2 Section DP 2 list of defined terms forestry business : inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).