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Exact(13)
Bonus depreciation: Since 2008, companies have been able to take advantage of a special depreciation allowance that allows them to write off 50 percent (and sometimes more) of certain kinds of investment in the first year.
Most important is an accelerated depreciation allowance of 80% in the year of installation.
The depletion allowance is similar to the depreciation allowance afforded other firms for their investments.
The standard policy limits coverage to the replacement cost of the property destroyed less a depreciation allowance.
Mr. Hoffman said the investment tax credit and the accelerated depreciation allowance might have pushed businesses to make more investments before the year's end.
The lesson of America was that the grandest of visions could be derailed by the most banal of details, like the size of the retail footprint, or whether Congress set the depreciation allowance at forty years or twenty years.
Similar(45)
It will mean reforming depreciation allowances, which currently allow companies to overstate the rate at which their capital assets decay.
They suggested continuing to allow businesses to depreciate assets over time, but to increase the size of annual depreciation allowances by the rate of interest so that businesses got the real present value of depreciation.
That applies to individuals not entitled to depreciation allowances.
In recent years, Congress instituted a temporary increase in depreciation allowances purely as a short-run stimulus measure.
Another form of incentive, the investment allowance, permits investors to deduct from taxable income a certain percentage of the cost of eligible assets in addition to depreciation allowances.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com