On Friday the House of Representatives approved a measure that would make an employer's 50% bonus depreciation permanent. The bill, (H.R. 4718), would permit businesses to expense half the cost of qualifying new equipment purchases, and allow certain tax credits to be used for capital reinvestment.  A similar, temporary provision expired for property placed in service before January 1, 2014. 

According to the House Report on this measure, the bill would allow businesses to claim an additional first-year depreciation deduction (``bonus depreciation'') equal to 50 percent of the cost of qualified property placed in service after December 31, 2013. The legislation would also expand the scope of qualifying property eligible for bonus depreciation to include qualified retail improvement property.  Finally, the bill would allow businesses to claim a portion of unused alternative minimum tax (AMT) credits in lieu of bonus depreciation. 

According to bill sponsor Rep. Pat Tiberi (R-OH), "Allowing companies to use these tools for capital reinvestment is a common-sense way to encourage job creation.”

Despite the swift House passage, the Senate is not expected to take up this measure.