By Vicki Needham - 06/21/10 08:12 PM EDT
Bonus depreciation allows businesses to recover the costs of certain capital expenditures more quickly than under ordinary tax depreciation schedules. Businesses can use bonus depreciation to immediately write off 50 percent of the cost of depreciable property.
The legislation is designed to help small and large businesses depreciate purchases faster, encouraging them to invest in more equipment, which is often produced by small businesses. Bonus depreciation was enacted as part of 2008 economic stimulus efforts but the provision expired at the end of last year.
Grassley said business investment is needed to fuel the economic recovery.
"Bonus depreciation is a time-tested temporary incentive for increased business investment," he said.