Bipartisan legislation would extend Section 179, bonus depreciation
November 16, 2011
Senators Marco Rubio - a Florida Republican - and Delaware Democrat Chris Coons recently introduced a bipartisan bill that would prolong bonus depreciation
and Section 179 allowances.
Section 179 allows for the immediate deduction of $500,000 from eligible fixed assets
that are either new or used, which accelerates their depreciation schedules
. Bonus depreciation allows for the full cost of new fixed asset
holdings, such as property and equipment, to be deducted.
Under the American Growth, Recovery, Empowerment and Entrepreneurship (AGREE) Act, both provisions will be extended for three years - similar to what would have happened if President Barack Obama's jobs package had not become deadlocked in Congress. If passed, the act will put money back into business owners' pockets more quickly at a time when funds are tight and many can't afford to expand their workforces.
"The AGREE Act is a meaningful step to find common ground and create a better environment for job creators to start businesses or expand existing ones," said Rubio.
Under the current legislation, both Section 179 and bonus depreciation are set to expire at the end of 2011. The AGREE Act would extend them both for three years.