The Modified Accelerated Cost Recovery System (MACRS) has special provisions for Indian reservation property owned by Native American tribes.

Qualified Indian reservation property is that which is used predominantly in a trade or business within an Indian reservation and benefits from shortened depreciation periods. The shortened depreciation periods are as follows:

The same shortened lives apply under the AMT system; thus, there is no adjustment for such property under AMT. These rules are effective for property placed in service after 12/31/93 and before 01/01/22. (IRC § 168(j)(8)). For tax years beginning after December 31, 2015, a taxpayer is permitted to make an election out of the special recovery periods. If the election is made for any class of property for any tax year, the special recovery periods do not apply to all property in that class placed in service during that year for which the election out is made. (Code Sec. 168(j)(8) as added by the PATH Act of 2015).