Two bills introduced by U.S. Rep. Pat Tiberi (R-OH) that aim to help U.S. businesses better compete at home and abroad have been cleared out of committee and are now headed to the full House for consideration.
The House Ways and Means Committee recently advanced the Bonus Depreciation Permanency Act (H.R. 2510) and the Permanent Active Financing Exception Act (H.R. 961).
“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.
Specifically, the Bonus Depreciation Permanency Act, which Tiberi introduced in the spring, would amend the Internal Revenue Code to make a tax provision permanent that allows employers to deduct 50 percent of qualified purchased property immediately. The bill also would:
• Lift restrictions to allow for more corporate Alternative Minimum Tax Credits to be used toward capital investment
• Expand the definition of qualifying property to include retail and restaurant improvements for both leased stores and owner-occupied stores
Making such bonus depreciation permanent would lead to increased investment, higher wages, job creation and economic growth, Tiberi said.
The Permanent Active Financing Exception Act, introduced in February by Tiberi, would allow companies to better compete around the globe by making 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 when conducting an insurance business.
The bill would help maintain a level playing field with foreign competitors by applying to financial services companies the same general rule that defers current U.S. taxes on other active trade or business income. Without the active financing-exception rules, U.S. companies would be less competitive and jobs would be jeopardized, 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,” Tiberi said. “Employers shouldn’t have to wait on Congress to make business decisions; they need the certainty provided by making these provisions permanent.”