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.