Ways and Means Committe passes bills to help businesses

U.S. Rep. Pat Tiberi (R-Ohio) announced Thursday that two of his bills, H.R. 2510, the Bonus Depreciation Permanency Act, and H.R. 961, the Permanent Active Financing Exception Act, were passed out of the Ways and Means Committee.

“Making both the active financing exception and bonus depreciation provisions permanent would bring stability and security to American employers and make them more competitive,” Tiberi said. “Without the year-to-year limbo of our tax extenders process, employers are better able to plan, invest, hire and grow their businesses, creating more American jobs. Just this morning, I met a small farmer from Muskingum County who explained that year after year he has to wait until December to see if Congress extends bonus depreciation to make major purchasing decisions. He and other employers shouldn’t have to wait on Congress to make business decisions; they need the certainty provided by making these provisions permanent.”

The Bonus Depreciation Permanency Act would make a tax provision permanent that allows employers to deduct 50 percent of qualified purchased property immediately.

It would also lift restrictions to allow for more corporate Alternative Minimum Tax Credits to be used toward capital investment and it expands the definition of qualifying property to include retail and restaurant improvements for both leased stores and owner-occupied stores.

The Permanent Active Financing Exception Act would make permanent the subpart F foreign personal holding company income exemption for income derived in the active conduct of banking, financing or a similar business, as a securities dealer, or in the conduct of an insurance business. This bill is aimed at helping maintain a level playing field with foreign competitors by applying to financial services companies the same general rule that defers current U.S. tax on other active trade or business income.