By Dean Franks, vice president of congressional affairs, ARTBA
Senate Finance Committee Ranking Member Ron Wyden (D-Ore.) April 26 rolled out proposed legislation to simplify accounting rules for calculating “bonus depreciation”—the popular benefit businesses use for capital investments.
The “Cost Recovery Reform and Simplification Act of 2016” would reduce the number of categories for depreciation of equipment from over 100 to six “pools” with the goal of reducing accounting headaches while still maintaining accelerated depreciation. As part of the Consolidated Appropriations Act of 2015, which included a host of permanent and temporary tax provision extensions, the “bonus depreciation” provision was extended through 2019.
Members of Congress from both parties and chambers routinely cite comprehensive tax reform for businesses as long-overdue and many believe 2017 may provide an opportunity for such legislation. Wyden’s proposal would be a natural fit in a tax reform package. Read the draft legislation and an accompanying fact sheet.