U.S. Congressman Pat Tiberi (R-OH) today announced that his bill, H.R. 4718, to encourage economic growth, foster job creation, and increases wages, passed out of the Ways & Means Committee by a vote of 23-11. It will next go to the Floor for consideration.
Congressman Tiberi’s bill would help companies better access capital, invest in new facilities and create American jobs by permanently extending 50 percent bonus depreciation – i.e., allowing businesses to deduct immediately, or “expense,” half of the cost of new equipment purchases – while lifting some restrictions to allow certain tax credits to be used for capital reinvestment, and ensuring more companies may take advantage of bonus depreciation.
“It’s clear to employers and policy experts alike that bonus depreciation helps grow the economy and encourages job growth,” said Congressman Tiberi. “As the Tax Foundation has reported, making bonus depreciation permanent would support the creation of 212,000 new jobs, and increase federal revenue by $23 billion per year. I encourage my colleagues who have supported bonus depreciation in the past to continue supporting this pro-growth measure.”
A letter from a group of 77 associations including the National Association of Manufacturers and the U.S. Chamber of Commerce said that they support swift action to permanently extend bonus depreciation because it would “create a pro-investment tax climate that will spur much needed economic growth and jobs and provide a bridge to broader tax reform.” Congressman Tiberi’s bill has received support from a wide range of businesses and professional organizations, including the following:
Americans for Tax Reform: There’s not a more pro-growth bill the Ways & Means Committee will consider this entire Congress than H.R. 4718. It deserves broad and enthusiastic support of not only the committee, but the whole House.”
Associated Builders and Contractors: “Bonus depreciation has been a vital provision since its resumption over five years ago, and enacting it permanently would serve to create jobs, increase wages, and grow the economy.”
Business Roundtable: “This is a tax policy that has consistently received bipartisan backing in Congress and the Administration for its support for U.S. employment and economic growth.”
National Retail Federation: “Bonus depreciation provides a very important incentive for making these [improvements] investments on the more rapid timetable that addresses competition in the marketplace, which helps to boost economic growth.”
National Taxpayers Union: “It’s pro-growth, it moves toward fundamental tax reform, and it allows companies to invest in new jobs and equipment.”
Small Business and Entrepreneurship Council: “Making permanent bonus depreciation is needed to drive investment. This vital measure will create the certainty businesses need to confidently plan and make investments.”
U.S. Farm Bureau: “Tax provisions that accelerate expensing and depreciation allow farmers and ranchers to better manage cash flow, minimize tax liabilities and reduce borrowing.
