Bonus Depreciation Approved By Congress

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Following House approval earlier this month, the Senate on Tuesday passed a tax package that includes the revival of bonus depreciation on capital investments, including aircraft. The measure allows businesses to write off up to 50 percent of the value of equipment purchased in and put into service in 2014. Industry groups applauded Congress’ approval of the package and urged President Obama to sign it into law. “The tax policies in this bill strengthen American competitiveness and preserve jobs by giving businesses immediate access to the most advanced equipment and encouraging investment in assets such as aircraft,” said Ed Bolen, president of the National Business Aviation Association. “NBAA welcomes this vote by the Senate and commends members of both parties for working together to renew tax policies such as accelerated depreciation.”

Proponents say they will continue to push to make bonus depreciation permanent. The House had passed a bill containing permanent tax measures including bonus depreciation over the summer, but the proposals did not survive subsequent versions of the legislation.The bill passed this week also would renew increased limits for deducting the full costs of qualifying equipment, known as IRS Section 179 expensing, for 2014 purchases.“We look forward to working with Congress next year to extend the time period for these provisions in order to achieve the maximum impact they bring to investment and job creation,” said Thomas Hendricks, president of the National Air Transportation Association. “NATA thanks the Senate for extending bonus depreciation and section 179 expensing for 2014. Provisions like these make a difference.”

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