The U.S. House Ways and Means Committee will vote May 29 on a plan to let companies accelerate write-offs of capital investments.
The proposal would revive and make permanent a 50 percent bonus depreciation for capital investments, turning a measure designed as an economic stimulus into a permanent feature of the U.S. tax code.
Companies that are lobbying in favor of bonus depreciation include AT&T Inc. (T:US) and Verizon Communications Inc.
The plan would cost the U.S. government $287.4 billion in forgone tax revenue over the next decade, according to the nonpartisan Joint Committee on Taxation. It runs counter to the broader revamp of the tax code proposed earlier this year by Ways and Means Committee Chairman Dave Camp, which would have slowed depreciation deductions.
The House approach is different from the U.S. Senate’s plan, which would extend the tax break through 2015.
The Ways and Means Committee also will consider several other bills, including permanent extensions of tax breaks for donating conservation easements and direct charitable donations from retirement accounts.
The committee also plans to vote on a bill that would let taxpayers make charitable deductions up to the April 15 filing deadline. If it becomes law, taxpayers could, for example, make a donation on March 1, 2015, and deduct it from their 2014 taxes.
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