Story ID: 
House Approves Bonus Depreciation Extension
By: Kerry Lynch
Caption: Tax act would restore 100 percent depreciation for aircraft
Word Count: 252
The move to restore 100 percent depreciation took a step forward with the U.S. House's approval of the Tax Relief for American Families and Workers Act of 2024 yesterday. While not unanimous, the House approved the bill, H.R.7024, by a 357-to-70 vote in a rare show of bipartisanship, particularly for a tax measure.
H.R.7024 now heads to the Senate, where its path forward is less clear—even with a strong endorsement by Senate Finance Committee Chairman Ron Wyden (D-Oregon).
“Most prognosticators would have told you as recently as a month ago that this bill was destined to die in negotiations or collect dust on a shelf if it ever got introduced. Given the sorry state of our political climate, it’s a real victory to have such strong momentum behind this bill,” said Wyden, who crafted the compromise tax package with his Republican House counterpart, Ways and Means Committee Chairman Jason Smith (R-Missouri).
The bill has gotten wide attention for measures covering child and low-income housing tax credits. A range of business-oriented measures for aviation includes an extension for 100 percent depreciation for most qualified business property placed into service before Jan. 1, 2026. However, the provision extends that further, to before Jan. 1, 2027, “for longer-production period property and certain aircraft.” The measure would continue 20 percent bonus depreciation for two more years after that.
In addition, the agreement would restore full research and experimental expensing through 2025. Currently, these costs must be amortized over five years.