President Obama Extends Tax Benefit for Vehicle Purchases
Photo courtesy of WhiteHouse.gov.
President Obama has extended a tax benefit that increases small-business expensing and bonus depreciation, which would allow additional expensing for new vehicles and other equipment placed into service by the end of the year.
The move could result in additional savings for fleets who purchase qualifying cars and trucks through dealerships, according to the National Auto Dealers Association.
The bill retroactively increases the limit on business equipment eligible under Section 179 for small business expensing to $500,000. Without the bill, the maximum allowable write-off would have been $25,000.
The bill also includes an extension of the 50 percent bonus depreciation deduction for new business equipment acquired and placed into service in 2014. The Senate had approved the House-passed H.R. 5771 on Dec. 16 to renew several expired tax provisions to benefit car and truck dealers and their customers.