WASHINGTON, July 11, 2014 – The House today passed a bill that would make permanent a tax law provision allowing businesses that purchase new equipment to depreciate 50 percent of the cost in the first year.
The so-called bonus depreciation bill, H.R. 4718, was approved in a 258-160 vote. The measure was originally part of a tax extenders package that expired at the end of 2013.
National Cattleman’s Beef Association President Bob McCan praised the passage of the bill.
“Permanent extension of 50 percent bonus depreciation . . . will help provide farmers and ranchers with predictable pro-growth tax code that allows us to make long-term investments in our businesses,” McCan said.
“Bonus depreciation coupled with Section 179 expensing are effective tools allowing farmers and ranchers to make the necessary investments needed to remain competitive in the global market place and create jobs in America.”
Permanent extension of increased expensing limitations under Section 179 of the tax code was approved by the House in June. The measure would move the maximum amount a small business, including a farm operation, could expense from $25,000 back to $500,000 – as it was from 2010 to 2013 – and the phase-out threshold would be set at $2 million.
In the spring, the Senate Finance Committee passed a bill that would extend nearly all of the tax extender package for two years. The chamber is not expected to take up the package until after the November elections.
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