Story ID: 
House Lawmakers To Consider Bonus Depreciation Extension
By: Kerry Lynch
Caption: Bonus depreciation included in Ways & Means portion of budget reconciliation
Word Count: 202
Full bonus depreciation is slated to return under a provision in the U.S. House Ways and Means Committee’s portion of the massive budget reconciliation package. The committee is set to consider the tax portion today. This follows House Transportation and Infrastructure Committee approval of its part of the package, including an additional $12.5 billion for air traffic control and an elimination of green energy incentives, on April 30.
Under the Ways and Means package, taxpayers would be permitted to immediately expense 100% of qualified property, including business aircraft, that is acquired on or after Jan. 20, 2025, and before Jan. 1, 2030. Current law has been phasing out bonus depreciation, with a 40% deduction allowance for property this year, going down to 20% next year.
The measure is among several business incentives included in the package coming under consideration. Another provision would permit the immediate deduction of domestic research or experimental expenses incurred after Dec. 31, 2024, and before Jan. 1, 2030. Currently, domestic research and experimental expenses must be deducted over five years. This measure provides rules coordinating the deduction with the research credit and clarifying foreign research and experimental expenses.
Further, the bill would modify and expand upon certain business interest expense deductions.