The return of 100 percent bonus depreciation?
June 22, 2012
Democrats on the House Ways & Means Committee recently introduced a bill that would extend 100 percent bonus depreciation
through the end of this year in a bid to kickstart hiring by encouraging businesses to purchase equipment.
The original 100 percent bonus depreciation allowance ended on December 31, 2011. This year, qualifying fixed assets
with a tax life of 20 years or less are eligible for 50 percent more deductible depreciation during their first year, provided they are new and placed in service by December 31. The measure expires altogether in 2013.
The Invest in America Now Act - the first in a series of "No Excuses" legislation intended to facilitate economic growth - was introduced by committee member Chris Van Hollen, a Maryland Democrat.
"This bill would extend the ability of businesses large and small to fully write off their investments in machines, software, equipment and other property they would normally have to depreciate over many years," said Representative Sandy Levin, the Michigan Democrat who heads the committee.
Levin noted that 100 percent bonus depreciation had drawn bipartisan support in the past and said there was no excuse for Republicans not to move the bill forward.