Bonus Depreciation Back On The Table

(Corrected)

0

The House has passed a package of tax measures that would, among other things, revive bonus depreciation on capital investments, including aircraft. Bonus depreciation allows businesses to write off up to 50 percent of the value of equipment purchased in and put into service in 2014. There are also reports the plan is to make bonus depreciation a permanent tax fixture. Critics saybonus depreciation was intended as a short-term measure to help business get over the economic crisis in 2008 but has become a giveaway to big companies. Not surprisingly, National Business Aviation Association President Ed Bolen disagreed in a letter to The New York Times.

Bolen said in his letter that “allowing ‘bonus’ depreciation delivers long-term (not short-term) stimulus to industries like general aviation, which provides high-skill, and high-paying jobs….” He said the measure gives companies immediate access to the latest technology and puts their capital investments on the same tax footing as other business write-offs like labor and supply costs. The Senate expected to vote shortly on parallel legislation.

Correction:
Our earlier story said the House was voting on the measure on Dec. 11 but it actually passed the bill the Thursday before.

LEAVE A REPLY