However, these improvements are qualified improvement property placed in service after the building was placed in service, qualifying for 50% bonus depreciation
in 2016 when placed in service, assuming all other requirements for claiming bonus depreciation
In September, several organizaitons, including AFS, signed onto the Broad Tax Extenders Coalition letter calling on members of Congress to act immediately to extend the expired and expiring tax provisions known as "tax extenders." Following the letter, the House Ways and Means Committee approved legislation to make permanent the 50% first-year expensing, also known as bonus depreciation
. Earlier this year, the Ways and Means Committee and the full House of Representatives approved legislation to make permanent two other tax extenders important to metalcasters: the R&D tax credit and enhanced Section 179 expensing.
The same is true for bonus depreciation
. The ongoing uncertainty on these issues may have an impact on your year-end plans to acquire business equipment.
The House Ways and Means Committee passed Thursday a package of tax extenders, including a permanent extension of bonus depreciation
, as well as extenders that deal with retirement planning and charitable giving.
3630) does not extend the current section 179 expensing threshold but does extend for one year so-called bonus depreciation
. The bonus depreciation
provision will reduce revenues by about $6 billion over ten years.
The first-year bonus depreciation
provisions are also extremely generous.
The Small Business Jobs Act passed in September 2010 included an extension of the previously approved bonus depreciation
, which permits companies to immediately write off 50 percent of the cost of certain depreciable asset expenditures.
* If all of the above requirements are met, bonus depreciation
applies automatically to qualified property, unless the taxpayer "elects out" under Sec.
50% bonus depreciation
. Generally, if future marginal rates are expected to be higher than current marginal rates, the business may want to push more depreciation deductions into the future.
The Senate Finance Committee had agreed to provide a one-year 10 percent bonus depreciation
, which during House-Senate negotiations seemed to have been agreed to as a three-year provision with a first-year bonus depreciation
of 30 percent.
In conjunction with the tax rules, the WEC Energy Group investment is expected to be eligible for 100% bonus depreciation
and production tax credits.