Making Bonus Depreciation Permanent to Be Debated by House Panel

The House Committee on Ways and Means plans to mark up on Thursday H.R. 4718, to provide a permanent extension of bonus depreciation, as well as other tax extenders that deal with retirement planning and charitable giving.

In the absence of comprehensive tax reform, the Tax Foundation argues that “a permanent extension” of the bonus depreciation “is the best option to spur investment, lift wages, grow the economy, create jobs and increase federal revenue.”

The Tax Foundation, a nonpartisan think tank, says that bonus deprecation would have a large impact on the economy and, according to the foundation’s analysis, be a revenue gainer in the long term in terms of:

The committee also plans to mark up on Thursday the following tax extenders that deal with retirement planning and charitable giving:

HR 4619, “to make permanent the rule allowing certain tax-free distributions from individual retirement accounts for charitable purposes”; HR 4719, “to permanently extend and expand the charitable deduction for contributions of food inventory”; HR 3134, “Charitable Giving Extension Act”; HR 4691, “to modify the tax rate for excise tax on investment income of private foundations.”

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