WASHINGTON - The U.S. Senate recently passed legislation that will allow businesses to accelerate depreciation of certain assets by allowing them to depreciate up to 50 percent of the cost of the asset in the first year it is placed in service, according to the Truck Renting and Leasing Association (TRALA).
The U.S. Senate passed the Small Business Jobs and Credit Act of 2010 (H.R. 5297), designed to help small businesses access capital, stimulate investment in small businesses, and promote entrepreneurship. The legislation includes an extension of the bonus depreciation provision sought by TRALA and others in the business community.
The original bonus depreciation provision was part of the American Recovery and Reinvestment Act, but expired Dec. 31, 2009. Enactment of the Senate version of the Small Business Jobs and Credit Act of 2010 will mean that bonus depreciation is retroactive back to Jan. 1, 2010; all qualifying property purchased and placed into service in 2010 would be eligible for the first-year 50 percent depreciation.
The U.S. House of Representatives must vote to accept amendments passed in the Senate before H.R. 5297 is sent to President Obama for his signature. Click here for a summary of the version of the Small Business Jobs and Credit Act of 2010 passed by the Senate.
Read Mike Antich's Market Trends blog, "The Need to Extend 50-Percent Bonus Depreciation."