Lawmakers discuss expiring depreciation allowance, other tax provisions
April 30, 2012
During a recent congressional subcommittee hearing on expired or soon-to-expire tax credits and breaks, lawmakers praised the 15-year straight-line depreciation
cost recovery for qualified fixed asset
improvements made to restaurants, leaseholds and retail establishments.
Representative Richard Neal, a Massachusetts Democrat, and Charles Boustany, a Louisiana Republican, voiced their support of the accelerated depreciation schedule and criticized the significantly extended 39-year timeline that would return for restaurants if the current allowance is permitted to expire. Specifically, they called the 39-year schedule "nowhere near reality."
Neal and Boustany also advocated for a new markets tax credit intended to kickstart investment in areas hit hard by the recession.
Other tax provisions discussed during the hearing included energy production tax breaks pertaining to wind, biomass, natural gas and nuclear energy incentives, as well as transit subsidies and deductibility of state and local sales taxes on Schedule A.
One piece of legislation that's guaranteed through the end of the year is the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which allows qualifying fixed assets
placed in service after December 31 of last year and before December 31, 2012, to undergo 50 percent bonus depreciation.