Accounting legislation proposed to lengthen 100 percent bonus depreciation
June 25, 2012
Democrats on the House Ways & Means Committee recently proposed an
accounting compliance change that would extend 100 percent bonus depreciation through the end of this year, an action that would bolster hiring by encouraging businesses to purchase equipment.
The original 100 percent bonus depreciation allowance, which was put into place by the Small Business Jobs Act of 2010, came to an end on December 31, 2011. In 2012, qualifying capital assets that have a tax life of 20 years or less are eligible for 50 percent more deductible depreciation during their first year, provided they meet specific requirements - namely, that they are new and placed in service by the end of the year.
The
accounting legislation - titled the Invest in America Now Act - was introduced by committee member Chris Van Hollen, a Maryland Democrat.
Representative Sandy Levin, the Michigan Democrat who heads the committee, noted that 100 percent bonus depreciation had drawn bipartisan support in the past and encouraged Republicans to move the bill forward.
Read more about the bill
here.