Depreciation Bonus information clearinghouse
 
Information about Depreciation Bonus and Sec. 179 Expensing


 Multi-industry letter to Congress urging 50% depreciation bonus extension
  
 AED letter to Senate Finance Committee highlighting the positive enhancement an extension of the depreciation bonus would add to MAP-21
  
 Multi-industry letter to Congress urging reinstatement of 100 percent depreciation bonus for 2012 and other pro-growth tax policies
  
 Text of H.R. 4196 to extend 100 percent depreciation bonus through 2012
  
 Letter to Congress Urging 100 Percent Depreciation Bonus Extension through 2012
  
 JCT Explanation of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010
  
 Summary and Text of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010
  
 Explanation Of The Tax Provisions in the Small Business Jobs Act Of 2010
  
 2010 IRS Revenue Procedure on Sec. 179 Cost Limitations
  
 Small Business Jobs Act (H.R. 5297)
  
 AED National Chairman Dennis Vander Molen's Testimony Before the House Small Business Committee on the Depreciation Bonus
  
 Letter to Congress Urging Bonus Depreciation Reinstatement
  
 2008 AED/NUCA Depreciation Bonus Study
  
 2003 AED/NUCA Study on Impact of the Depreciation Bonus
  
 

Summary of 2003 AED/NUCA Depreciation Bonus Study

  
 Link to IRS Website
  

Depreciation Bonus Information Clearinghouse

At midnight on Dec. 31, 2013 the 50 percent depreciation bonus expired and Sec. 179 expensing levels fell from $500,000 with a $2 million phase-out cap to $25,000 with a $200,000 cap. On Dec. 19, 2013 the Senate rejected legislation that would have continued depreciation bonus and the higher Sec. 179 levels for 2014. At this time, it is unknown when or whether the Senate will vote again on a tax extenders bill.


View the 2013 AED Depreciation
Bonus brochure HERE.

Order additional copies
of the brochure HERE.





American Taxpayer Relief Act

On January 2, 2013 President Obama signed the American Taxpayer Relief Act (H.R. 8) to temporarily avert the "fiscal cliff." Section 331 of the new law extends 50 percent bonus depreciation through 2013. It also increases Sec. 179 expensing levels to $500,000 with a $2 million phase-out for 2012 and 2013.

Additionally, the new law allows companies the option to accelerate AMT credits in lieu of the depreciation bonus and to permit businesses using PCM (percentage of completion method of accounting) to benefit from the capital investment incentive.

Depreciation Bonus At A Glance
  • The American Taxpayer Relief Act extended 50 percent depreciation bonus through 2013.
  • The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 provides 50 percent depreciation bonus for capital investments placed in service after December 31, 2011 and through December 31, 2012.
  • Depreciation bonus helps businesses that cut their tax bill buy new equipment.
  • Applies, among other things, to purchases of tangible personal property (including construction, mining, forestry, and agricultural equipment) with a MACRS recovery period of 20 years or less
  • Applies to new equipment only
  • Allowed for both regular and alternative minimum tax purposes
  • Discretionary - Taxpayer need not claim the depreciation bonus
Sec. 179 Expensing At A Glance
  • The American Taxpayer Relief Act increases Sec. 179 expensing levels to $500,000 with a $2 million phase-out for 2012 and 2013.
  • New and used equipment is eligible for expensing
  • Can be combined with depreciation bonus

Keep checking our DepreciationBonus.org Web site for more information.

Please note that the information on this site is provided by the Associated Equipment Distributors as a public service to equipment purchasers. It should not be construed as tax advice or as a promise of potential tax savings or reduced tax liability.

For more information about the depreciation bonus, contact your tax professional or visit the Internal Revenue Service website.

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