Bonus depreciation extension proposed
March 15, 2012
An Ohio Representative recently introduced legislation that would extend 100 percent bonus depreciation
of eligible fixed asset
purchases for 2012, allowing the expenditures to be fully written off.
The 100 percent allowance originally expired on December 31, 2011, and was replaced by a 50 percent equivalent through the end of this year. Republican Representative Pat Tiberi's bill is similar to a measure considered while Congress was hashing out the payroll tax holiday extension, which ultimately did not pass.
"I've heard time again from small business owners in Ohio that extending bonus depreciation is the single, biggest factor in allowing their businesses to grow this year," said Tiberi, who chairs the House Ways and Means subcommittee that oversees taxes, in a statement quoted by The Hill. "Allowing job creators to use these tools for capital reinvestment is a common-sense way to encourage job creation."
The bipartisan bill echoes President Barack Obama's fiscal 2013 budget, which also calls for the extension of the allowance. Additionally, the budget includes a provision that will "eliminate special depreciation rules for purchases of corporate jets and other general aviation passenger aircraft."