House approves bill to extend 50 percent bonus depreciation for businesses

The House of Representatives approved legislation on Friday that was introduced by Rep. Pat Tiberi (R-Ohio) to permanently extend 50 percent bonus depreciation for businesses.

H.R. 4718 would allow businesses to immediately deduct or expense half the cost of new equipment purchases to promote economic development, job creation and higher wages.

“This measure is about providing certainty for employers and encouraging them to grow their businesses and hire more workers,” Tiberi, a member of the House Ways and Means Committee, said. “Time and again Ohio employers have described how this measure, allowing them to immediately deduct half the cost of their equipment purchases, frees up more money to invest in their businesses. Making it permanent allows employers to effectively plan for their future needs and incentivizes them to grow and create jobs.”

Businesses that have limited ability to use bonus depreciation because they operate at a loss would benefit from the measure as well. Additionally, numerous restrictions on corporate alternative minimum tax credits would be lifted under the measure so businesses could use them for capital reinvestment.

The bill has gained the support of nearly 80 organizations, including the National Association of Manufacturers and the U.S. Chamber of Commerce.