Story ID: 
Bonus Depreciation Advances in U.S. Senate
By: Kerry Lynch
Caption: After last year's last-minute extension, industry groups are hoping Congress acts sooner this year.
Word Count: 240
Encouraged by the U.S. Senate Finance Committee’s recent vote to extend bonus depreciation, aviation groups are continuing their push for swift consideration in both the U.S. House of Representatives and Senate. The Senate Finance Committee last week approved a two-year extension of a number of tax measures, including 50-percent bonus depreciation, increased Section 179 expensing levels and the research and development credit.

Senate Finance Committee Chairman Orrin Hatch (R-Utah) said the approval would provide some certainty on the provisions as Congress works on longer-term tax reform. “These tax provisions are meant to be incentives... and promote certain activities. If they are expired, they aren’t doing much good. That being the case, we need to move this package forward as soon as possible,” he said.

NATA president and CEO Tom Hendricks agreed, saying, “It is important the Congress act quickly to put these job-creating provisions to work as soon as possible.“ GAMA president and CEO Pete Bunce echoed those sentiments, noting last year’s passage came so late in the year that it provided little opportunity to take advantage of the provisions. Bonus depreciation is effective in spurring investment, Bunce added, saying either a two-year or permanent extension would be important for not only investment, but also for jobs. While the Senate looks first at a short-term extension, the House has looked at permanent extension of bonus depreciation and other tax provisions.