Illinois lawmakers mull over bonus depreciation proposal
November 18, 2011
Illinois lawmakers are considering scrapping bonus depreciation
in order to fund other tax breaks for the state's businesses and low-income individuals, according to the GateHouse News Service.
Local business owners have spoken out against the proposal, which would be retroactive.
"We believe bonus depreciation is one of the major reasons we have seen our sales increase," said Derrick Stevens of a Petersburg-based company that sells and services John Deere farm equipment, as quoted by the news source. "To change tax laws retroactively at this time would be detrimental to businesses that have made these investments in good faith."
Stevens testified in front of the House Revenue Committee, which is yet to make a decision about the plan. Chairman John Bradley said the committee will be dismantling and analyzing the current legislation - including the depreciation tax
- then "trying to put back together what works," according to the media outlet.
On a national scale, the bonus depreciation provision in its current form (100 percent) is set to end on December 31. For the duration of 2012, there will be a 50 percent allowance.