Rep. Pat Tiberi’s (R-Ohio) bill, H.R. 4718, which seeks to encourage economic growth, job creation and increased wages, will be up for a vote on Friday.
The bill would aid companies in accessing capital, investing in new facilities and creating jobs by permanently extending 50 percent bonus depreciation, allowing businesses to immediately deduct half of the cost of new equipment purchases. The legislation passed out of the House Ways and Means Committee by a vote of 23-11 in May.
The bill also removes some restrictions to allow the use of certain tax credits for capital reinvestment while ensuring that more companies take advantage of bonus depreciation.
“It’s clear to employers and policy experts alike that bonus depreciation helps grow the economy and encourages job growth,” Tiberi said. “As the Tax Foundation has reported, making bonus depreciation permanent would support the creation of 212,000 new jobs, and increase federal revenue by $23 billion per year. I encourage my colleagues who have supported bonus depreciation in the past to continue supporting this pro-growth measure.”
Swift action to permanently extend bonus depreciation was supported in a letter from a group of 77 associations, including the National Association of Manufacturers and the U.S. Chamber of Commerce. The letter said the extension would result in a pro-investment tax climate that spurs economic growth and jobs and provides a bridge to broader tax reform.
Support for Tiberi’s bill has poured in from numerous businesses and professional organizations, including Americans for Tax Reform, Associated Builders and Contractors, Business Roundtable, the National Retail Federation, the National Taxpayers Union, the Small Business and Entrepreneurship Council, and the U.S. Farm Bureau.