On Friday the House passed on a 258-to-160 vote H.R. 4718, a bill that makes 50 percent bonus depreciation permanent and expands the deduction to vines and trees that bear fruits and nuts.
Bonus depreciation is one of the 50-plus tax provisions that expired at the end of 2013. The Senate Finance Committee passed a package in April that contains a two-year extension (for 2014 and 2015) of all the expiring provisions, including bonus depreciation. That bill, S. 2260, the Expiring Provisions Improvement, Reform, and Efficiency Act of 2014, has been blocked from consideration by the full Senate because of a procedural disagreement over amendments.
While the ability to immediately deduct half the cost of a tree or vine when it is planted instead of having to keep track of the cost and then deducting it when the plant produces fruit or nuts is very positive, several commodities that are also required by current law to wait to depreciate the cost of plantings were not included in the bill (including blueberries and cranberries.)
Farm Bureau supported passage of H.R. 4718 and will work to expand bonus depreciation to additional crops as the bill works its way through the Senate and conference.