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Biological Opinions for the Sacramento-San Joaquin Delta: A Case Law Summary -- Click to view this document
The Supplemental Nutrition Assistance Program: Categorical Eligibility -- Click to view this document
Border Security: Immigration Enforcement Between Ports of Entry -- Click to view this document
Terrorist Watch List Screening and Background Checks for Firearms -- Click to view this document
Transportation, Housing and Urban Development, and Related Agencies (THUD): FY2013 Appropriations -- Click to view this document
The Fair Labor Standards Act (FLSA): An Overview -- Click to view this document
Instances of Use of United States Armed Forces Abroad, 1798-2013 -- Click to view this document
Community Development Financial Institutions (CDFI) Fund: Programs and Policy Issues -- Click to view this document
Securing U.S. Diplomatic Facilities and Personnel Abroad: Background and Policy Issues -- Click to view this document
Syria's Chemical Weapons: Issues for Congress -- Click to view this document
Nuclear Energy: Overview of Congressional Issues -- Click to view this document
Terminating Contracts for the Government's Convenience: Answers to Frequently Asked Questions -- Click to view this document
Selected Agency Budget Justifications for FY2014 -- Click to view this document
The Enactment of Appropriations Measures During Lame Duck Sessions -- Click to view this document
Missing Adults: Background, Federal Programs, and Issues for Congress -- Click to view this document

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Section 179 and Bonus Depreciation Expensing Allowances: Current Law, Legislative Proposals in the 112th Congress, and Economic Effects

Expensing is the most accelerated form of depreciation for tax purposes. Section 179 of the Internal Revenue Code (IRC) allows a taxpayer to expense (or deduct as a current expense rather than a capital expense) up to $125,000 of the total cost of new and used qualified depreciable assets it buys and places in service in 2012, within certain limits. Firms unable to take advantage of the Section 179 expensing allowance may recover the cost of qualified assets over longer periods, using the appropriate depreciation schedules. While the Section 179 expensing allowance is not targeted at firms that are relatively small in employment, asset, or receipt size, the rules governing its use limit its benefits to such firms, for the most part. In addition, Section 168(k), which provides a so-called bonus depreciation allowance, generally allows taxpayers to expense half the cost of qualified assets bought and placed in service in 2012. Taxpayers that can claim the allowance have the option of monetizing any unused alternative minimum tax credits they have accumulated from tax years before 2006, within certain limits, and writing off the cost of the assets that qualify for the allowance over a longer period. This report examines the current status, legislative history, and economic effects of the two expensing allowances. It also discusses initiatives in the 112th Congress to modify them. The report will be updated as legislative activity warrants. Bills: H.R. 8

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