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ABMA Sends Letter to Extend Bonus Depreciation Tax Provision

ABMA sent a letter to the Chair and Ranking Members of the House Committee on Ways and Means and Senate Committee on Finance regarding extending the bonus depreciation tax provision. This, along with other tax provisions and a federal budget, will be considered by the lame duck Congress in December. 

For over two decades, the tax code has allowed for some form of first year expensing known as bonus depreciation, a tax incentive that allows businesses to immediately deduct a large percentage of the purchase price of eligible assets, such as machinery, rather than write them off over the “useful life” of that asset. 

This tax write-off is invaluable to small businesses like the members of ABMA because they often incur considerable capital expenses for machinery, and bonus depreciation allows our members to continue to invest in their business and employees.