IEG Policy is part of the Business Intelligence Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. Please do not redistribute without permission.

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

Recap: Permanent Bonus Depreciation Bill Advances With Charity Bills in House Ways & Means Markup

The House Ways and Means Committee on Thursday approved legislation to make bonus depreciation permanent, as well as several tax measures related to charitable giving. The depreciation measure (HR 4718) advanced after a vote of 23-11. A two-year extension has been approved by the Senate Finance Committee and is awaiting action on the Senate floor. Permanency proponents said during the May 29 markup that eliminating the incentive's horizon would increase investment and improve the economy — a needed boost considering new government data showing that output contracted in the first three months of 2014, said Rep. Pat Tiberi (R-Ohio), the bill's primary sponsor. “It helps companies better access capital and invest in facilities, buy equipment, and most importantly create American jobs,” he said. But Democrats on the panel disagreed, arguing that getting rid of the depreciation schedule's temporary nature would reduce its effectiveness. Bonus depreciation lets businesses write off half the cost of their investments in equipment the same year they make them. Opponents also cited the measure's lack of budget offsets; making bonus depreciation permanent would cost $263 billion from fiscal years 2014 through 2024, the Joint Committee on Taxation estimated.

Advertisement

Topics

What to read next

UsernamePublicRestriction

Register

PL019980

Ask The Analyst

Please fill in the form below to send over your enquiry or check the Ask The Analyst Page to find out more about the service

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel