|
 Known as "bonus depreciation," the tax break lets companies deduct
50 percent of the costs of certain equipment purchases right away,
instead of depreciating the costs over years. That allows them to
lower their federal tax bills.
The rule is temporary, adopted in 2009 to help companies recover
from the financial crisis. Republicans want to extend it and make it
a permanent part of the tax code, which would cost taxpayers an
estimated $287 billion over the next 10 years.
The measure was expected to come up for a vote by the
Republican-controlled House of Representatives on Friday. If
approved there, it would go next to the Democrat-controlled Senate,
where it was not expected to advance.
If it did win Senate approval, however, and arrived on President
Barack Obama's desk, his senior advisers would recommend that he
veto it, a White House statement said.
Bonus depreciation "was never intended to be a permanent corporate
giveaway," the statement said.
[to top of second column] |
The Republican measure includes no accompanying proposal to offset
its costs, which would enlarge the federal deficit.
The measure was drafted by Republican Representative Pat Tiberi, who
said earlier in a statement that "bonus depreciation helps grow the
economy and encourages job growth."
(Reporting by Kevin Drawbaugh; editing by Andrew Hay)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
