The US House and Senate are negotiating toward a July 4, 2025
deadline for the next massive US tax legislation. Current proposals
are designed to continue many of the business-friendly provisions
of President Trump's 2017 tax legislation that are scheduled to
end, and they also eliminate many of the climate and clean-energy
provisions in his predecessor Biden's tax legislation.
An important proposal is to increase "bonus
depreciation" back up to 100% of the cost of qualifying new
and used tangible property and extend the years in which a taxpayer
may use this 100% bonus depreciation, beginning in early 2025 (40%
is all that is allowed in 2025 under current law) all the way
through the end of 2029 (or 2030 in the case of long-production
property and certain aircraft). The Congressional Joint Committee
on Taxation recently estimated this provision would reduce tax
receipts by (cost the United States) more than $219 billion over
ten years, the costliest of the many
