Legislative update - Ways and Means approves expanded bonus depreciation, charity-related “tax extenders” 

May 29:  The House Ways and Means Committee today approved a bill for a permanent extension and expansion of bonus depreciation. It also approved five bills related to charitable provisions.

Bonus depreciation

Provisions of the bonus depreciation bill would:

  • Allow a 50% depreciation deduction for qualified property placed in service after December 31, 2013
  • Expand the definition of qualified property to allow a bonus depreciation deduction for internal portions of a building that are “qualified retail improvement property” and for for trees and vines that bear fruits or nuts
  • Make permanent an election that has intermittently been available to corporations over the last few years to accelerate the use of certain otherwise unusable minimum tax credits, in exchange for giving up bonus depreciation on qualified property placed in service during the tax year and using straight-line depreciation

A corporation making the election would potentially be able to claim each year a refundable credit of up to 50% of the amount of unused minimum tax credits available in its 2014 tax year.

Read text of the bill for permanent extension and expansion of bonus depreciation (along with the Joint Committee of Taxation description):

Charitable, exempt organization bills

Read text of the bills related to charitable or exempt organizations (and the related JCT descriptions):

  • H.R. 2807 [PDF 246 KB] which would permanently extend the special rule for contributions of qualified conservation contributions—JCT description [PDF 55 KB] of H.R. 2807
  • H.R. 4619 [PDF 242 KB] which would allow tax-free contributions from retirement instruments to charitable organizations—JCT description [PDF 59 KB] of H.R. 4619
  • H.R. 4719 [PDF 989 KB] which would extend and expand the charitable deduction for contributions of food inventory—JCT description [PDF 56 KB] of H.R. 4719
  • H.R. 3134 [PDF 242 KB] which would extend the period in which a charitable deduction may be taken to the due date of the return—JCT description [PDF 34 KB] of H.R. 3134
  • H.R. 4691 [PDF 340 KB] which would reduce the excise tax from 2% to 1%—JCT description [PDF 35 KB] of H.R. 4691

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