from a law firm article
4. Bonus depreciation is available for certain building improvements
bonus depreciation was available for two types of real property:
- Land improvements other than buildings, for example fencing and parking lots,
from the IRS
Asset class 00.3, Land Improvements, of Rev. Proc. 87-56 includes
improvements directly to or added to land, whether the improvements are 1245 or
1250 property, provided the improvements are depreciable. Examples of these
assets might include sidewalks, roads, canals, waterways, drainage facilities, sewers,
wharves and docks, bridges, fences, landscaping, shrubbery, or radio and television
transmitting towers. Assets included in asset class 00.3 have a recovery period of 15
years.
based on this the sewer qualifies for bonus depreciation
note that PUB 946 page 23 states to be qualified property for bonus depreciation
Certain Qualified Property Acquired After September 27, 2017
You can elect to take a 100% special depreciation allowance for property acquired after September 27, 2017, and placed in service before January 1, 2023. Your property is qualified property if it meets the following.
• Tangible property depreciated under MACRS with a recovery period of 20 years or less.
a sewer does not meet the legal definition of tangible property. however, the publication should not include "tangible" since the actual code section doesn't (never know when you can trust IRS publications since they are not law and actually have no standing in tax court)
168(k)(2) Qualified property
For purposes of this subsection—
(A)In general
The term “qualified property” means property—
(i)
(I)to which this section applies which has a recovery period of 20 years or less,
so you are entitled to a deduction but another question is the proper year since you aren't supposed to depreciate an asset until it is placed into service.
I
