Tax Law Commons^™

Section 179 Expensing And The Bonus Depreciation Allowance: Their Application, History, Costs, And Benefits., Alice E. Keane

Alice E. Keane

This article examines Section 179 expensing and the bonus depreciation allowance, tax incentives that allow businesses to dramatically accelerate deductions on purchases of most tangible property. Generally, Section 179 expensing benefits smaller businesses, while the bonus depreciation allowance, which is more controversial and costly, is more useful to larger businesses and C corporations. Both of these tax incentives expired at the end of 2014. Congress is currently considering bills that would extend these incentives retroactively to 2015 and beyond. There is conflicting evidence of the benefit to the economy of Section 179 expensing and the bonus depreciation allowance, with certain …