Bills
| 3.23.22

Permanently Extending a 50% Tax Deduction for the Cost of New Business Equipment Expenses (H.R. 4718)

Do you support or oppose this bill?

What is H.R. 4718?

(Updated July 13, 2017)

This bill would make permanent the "50 percent bonus depreciation" tax extender. This tax extender allows businesses to immediately deduct half the cost of new business equipment investments. 

Argument in favor

Allows businesses of all sizes to invest in their own productivity, thereby helping themselves while creating new jobs.

Argument opposed

Can my yacht be a "new business equipment investment" if I make shady brokerage deals from it?

Impact

The bill impacts tax deductions related to business equipment investments.

Cost of H.R. 4718

The Joint Committee on Taxation estimates that the bill would reduce federal revenues by $262,911,000 over the 2014-2024.

Additional Info

Media:


-If you'd like to get deep into this, the Joint Committee on Taxation is there for you. 

-Deeper, you say? Well, William McBride, the Chief Economist at the Tax Foundation, has said that 
extending 50 percent bonus expensing on a permanent basis would boost GDP by over 1 percent, the capital stock by over 3 percent, wages by about 1 percent, and would create 212,000 jobs.

You can read his report here.