AED: ‘Leading the Charge’ to Reinstate Bonus Depreciation

The Associated Equipment Distributors (AED) reported that the roller coaster ride on Capitol Hill continued as the House Ways and Means Committee chairman Dave Camp (R-MI) and Senate Majority leader Harry Reid (D-NV) announced a deal on tax extenders package. But it was quickly derailed by an Obama administration veto threat.

The compromise proposal would permanently increase Sec. 179 expensing levels starting in 2014 and reinstate 50% bonus depreciation for equipment purchases for 2014 and 2015, along with extending numerous business-supported expired tax provisions. Just as Washington’s tax policy analysts were digesting the welcome news, President Obama and key Democrats announced opposition to the compromise, citing the business-friendly nature of the package and the lack of attention to “working families,” AED reported.

Republicans, with a strengthened majority in Congress next year including Senate control, are less willing to compromise and more likely to delay tax extenders consideration until early next year. Nonetheless, there is support for reinstating all expired tax extenders for 2014 during the lame duck to avoid complicating the year’s tax filings, according to AED.

Punting to 2015 only adds more ambiguity to an already uncertain economic situation for the construction industry and AED is leading the charge to reinstate the temporary 50% depreciation bonus and permanently increase Sec. 179 expensing levels before the lame duck session ends.

Meanwhile, a continuing resolution (CR) to fund the federal government into next year was also in flux. Lawmakers had been making steady progress on a plan to keep the federal government open until next fall–until President Obama’s announced his immigration executive order, AED wrote.

To view the full AED report, click here.

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Terry Mulreany
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