U.S. Representative Jeff Denham (R-Turlock) today voted in favor of making bonus depreciation, a tax provision allowing companies to deduct half the cost of new capital investments, permanent. The same bill expanded bonus depreciation to apply to the planting and grafting of trees and vines, meaning Central Valley farmers can immediately benefit from investing in their long-term crop businesses.
“Extending bonus depreciation encourages companies across the country to increase capital investment, build new facilities and create jobs,” said Rep. Denham. “I’ve been pushing to make fruit-bearing trees and vines eligible for bonus depreciation for many years because of the benefit it will bring to the Central Valley’s agricultural community, encouraging them to invest in new crops.”
The measure, H.R. 4718, includes a provision to expand the class of qualified property to permit a vine or tree bearing fruit to be eligible for bonus depreciation when it is grafted or planted. Under previous laws, bonus depreciation was only available for this class of property when placed in service.
The non-partisan Joint Committee on Taxation estimates that making bonus depreciation permanent will increase economic growth and could reduce the national debt by as much as $10 billion.
