Congressman Pat Tiberi (R-Ohio) recently introduced H.R. 2510, legislation that would make the 50 percent bonus depreciation tax extender permanent. In turn, this will encourage strong job creation and economic growth. ATR endorses this legislation and urges all members of the Congress to vote for and otherwise support this important pro-growth bill.
Currently, businesses are able to immediately deduct 50 percent of qualified purchased property such as new equipment. But since this provision was enacted in 2002, it has been increased, extended and expired in a haphazard way. This uncertainty is problematic for businesses owners as it affects their ability to effectively make long-term decisions. But by making bonus depreciation permanent, H.R. 2510 will create much needed certainty and spur job growth, economic activity and increase wages.
H.R. 2510 also contains several improvements that encourages Americans to invest in their business. First, it expands the definition of qualifying property under bonus depreciation to include retail and restaurant improvements. Addressing this inequity will help encourage business owners to make important investments. Second, H.R.2510 will allow businesses to claim unused Corporate Alternative Minimum Tax credits and use these credits for capital investment.
Making bonus deprecation permanent will produce immediate and strong economic benefits. A study released by the Tax Foundation found making bonus depreciation permanent will add $182 billion to the economy, increase federal revenue by $23 billion a year, and create 212,000 new jobs.
This pro-growth legislation will help increase economic growth and jobs and create much needed certainty for American businesses. ATR supports this legislation and urges members of Congress to support and pass this bill.