AEDNews - Construction Equipment Industry News|
House Passes Tax Reform Bills, Senate Excludes Bonus Depreciation
The House approved two significant tax measures before heading home for the August recess.
On Aug. 1, the House passed the Job Protection & Recession Prevention Act of 2012 (H.R. 8), 256-171. The bill provides a two-year alternative minimum tax patch (covering 2012 and 2013) and extends through Dec. 31, 2013, the tax cuts originally enacted in 2001 and 2003 including:
On Aug. 2, the House passed the Pathway to Job Creation through Simpler, Fairer Tax Code Act of 2012 (H.R. 6169), 232-189. The bill provides rules for next Congress to follow in order to expedite the consideration of comprehensive tax reform legislation.
Lower marginal rates
Marriage penalty relief
$1,000 child credit
15 percent top rate on dividends and capital gains
Estate tax at its 2011 and 2012 parameters (indexed)
Higher Sec. 179 small business expensing limits.
Both matters still require Senate approval, though neither is expected to gain traction on the other side of Capitol Hill.
Bonus Depreciation Fails to Make the Cut
In related news, the Senate Finance Committee failed to approve an amendment in the Aug. 2 markup of the Family & Business Tax Cut Certainty Act of 2012 (“extenders bill”) that would have reinstated 100 percent bonus depreciation for 2012 and extend it through 2013.
AED has been making the case that 100 percent depreciation bonus should be reinstated for 2012 to amplify the economic impact of the new highway bill and engage contractor purchasing. To read our letter to the Senate Finance Committee, click here.
Keep the pressure on Congress to reinstate 100 percent bonus depreciation by visiting www.AEDAction.org today.
And remember that 50 percent bonus depreciation is still in effect for 2012. For more information please visit www.depreciationbonus.org.
Article Date: 2012-08-06
Source: Associated Equipment Distributors
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