Congress Should Extend Bonus Depreciation

Joe Kennedy March 26, 2014
March 26, 2014

A new blog by ITIF urges Congress to extend bonus depreciation through at least 2014. It makes little sense to increase the cost of investment when economic growth is still below its potential.  American companies already face high statutory and effective income tax rates. Bonus depreciation encourages companies to purchase additional equipment, which in turn boosts productivity. It also increases the chance that companies will actually experience higher revenues before having to pay tax on their accounting “profits.”