Chalk one up for business and the industry. On July 11, the House of Representatives voted 258-160 to pass H.R. 4718 to amend the Internal Revenue Code of 1986 to modify and make permanent the additional 50 percent depreciation allowance (bonus depreciation) qualified property placed in service after December 31, 2013.
The bill modified the definition of "qualified property" to include qualified retail improvement property; increased by $8,000 (with an annual inflation adjustment after 2014) the maximum allowable depreciation deduction for passenger automobile (i.e., any 4-wheeled vehicle which is manufactured primarily for use on public streets, roads, and highways and is rated at 6,000 pounds unloaded gross vehicle weight or less).
The bill also makes permanent for taxable years ending after Dec. 31, 2013, the election to increase the alternative minimum tax (AMT) credit limitation in lieu of bonus depreciation.