22. Department of the Treasury · Notable · Needs Congress
Allow immediate expensing for capital expenditures
Printed page 696 22. Department of the Treasury
“The system should allow immediate expensing for capital expenditures and index capital gains taxes for inflation.”
What has happened
- Partially done
Public Law 119-21 delivered immediate expensing for most classes of capital expenditure but not all. Section 70301 made the 100 percent bonus depreciation allowance under section 168(k) permanent by striking its phase-down; section 70302 restored immediate expensing of domestic research and experimental expenditures; section 70306 raised the section 179 expensing limits; and section 70307 added a new section 168(n) allowing a 100 percent allowance for "qualified production property" — the manufacturing portion of nonresidential real property. Structures outside that carve-out are still recovered over 27.5 or 39 years, so expensing is not available for capital expenditures generally. The second half of this Quote — indexing capital gains for inflation — is tracked separately as #1924 and was not enacted.
Research log
What was searched, and what didn’t count as evidence
Research notes
Operative text read at https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm. Sec. 70301(a) strikes clause (iii) of section 168(k)(2)(A), which was the phase-down; sec. 70307 adds section 168(n) for qualified production property placed in service before 2031.
partial rather than done because the Quote asks that “the system” allow immediate expensing for capital expenditures, and nonresidential real property outside the new production-property carve-out is still capitalized and depreciated.
- Action
- create
- Object
- expensing of capital expenditures
- ID
- 1923