House Scheduled to Vote on Bonus Depreciation Legislation

On Friday, the House of Representatives is expected to approve another bill that permanently extends an expired tax provision. H.R. 4718 would expand and make permanent 50 percent bonus depreciation for qualified property placed in service after Dec. 31, 2013. While bonus depreciation is not classified as a traditional “extender,” it does keep the focus on the expired tax provisions. Coupled with the higher Section 179 limits (H.R. 4457), the bonus depreciation bill goes a long way towards moving the tax treatment of business investment towards general expensing; a concept many economists have argued is good for the economy. The legislation is the fourth tax bill to be approved by the House in the past two months. For more information, please contact Brian Lenihan at (202) 547-4733 or lenihanb@agc.org.