2015: Schweikert Voted For Extending For Five Years The Bonus Depreciation Tax Deduction As Part Of A Larger Tax Extender Passage. In December 2015, Schweikert voted to extend for five years bonus depreciation. According to Congressional Quarterly, the legislation would have "extend[ed] for five years (including 2015) [...] bonus depreciation, at a cost of $28.3 billion over 10 years, for property placed in service before the end of 2019 (and through 2020 for certain transportation property, as well as certain longer-lived items). This provision generally allows businesses to deduct from their taxes 50% of the adjusted basis of the value of that property in addition to amounts that they could otherwise claim under depreciation rules --- but it phases this amount down in the last two years. It includes certain modifications related to types of property that qualify and to alternative minimum tax (AMT) liability." The underlying measure would "retroactively [renew] for the current 2015 tax year most of the expired provisions and further extends them for varying periods, including by making more than a dozen permanent and extending most others for two years (2015 and 2016)." The vote was on concurring in the Senate amendment to the bill with an amendment. The House passed the amendment by a vote of 318 to 109. The legislation was later combined with an Omnibus appropriations bill. The Senate passed the larger measure and the president signed it. [House Vote 703, 12/17/15; Congressional Quarterly, 12/16/15; Congressional Actions, H.R. 2029]
2014: Schweikert Voted For Permanently Extending Bonus Depreciation. In September 2014, Schweikert voted for modifying and permanently business expensing. According to House Republicans, "Title VI: H.R. 4718 [...] makes bonus depreciation permanent in order to lower the cost of capital for businesses [,] [m]akes permanent the 50-percent additional first-year depreciation deduction for qualified property [,] [e]xpands the definition of 'qualified property' to include qualified retail improvement property [,] [m]akes permanent and modifies the election to increase the AMT credit limitation in lieu of bonus depreciation, 50-percent bonus depreciation rate is effective for property placed in service after December 31, 2013." This provision was part of a larger bill called the Jobs for America Act. The bill passed the House by a vote of 253-163. The bill died in the Senate. [House Vote 513, 9/18/14; GOP.gov, Accessed 9/15/15; Congressional Actions, H.R. 4]
Bill Would Expand Definition Of Qualified Property To Include Certain Trees And Vines Bearing Fruits And Nuts. According to the Congressional Budget Office, "Under current law that additional deduction expired after December 31, 2013. H.R. 4718 would also expand the definition of qualified property to include certain retail improvement property and certain trees and vines bearing nuts or fruits. It would also expand and make permanent recently expired provisions that allowed corporations to claim additional credits against the alternative minimum tax instead of claiming the additional first-year depreciation deduction." [Congressional Budget Office, 6/5/14]
Bill Would Increase Federal Deficits By About $287 Billion From Fiscal Years 2014 -- 2024. According to the Congressional Budget Office, "The staff of the Joint Committee on Taxation (JCT) estimates that enacting H.R. 4718 would reduce revenues, thus increasing federal budget deficits, by about $287 billion over the 2014-2024 period." [Congressional Budget Office, 6/5/14]
Supporters Claim That The Provision Provides Certainty For American Employers By Allowing Them To Plan For Future Investment. According to Congressional Quarterly, "Supporters of the bill argue that it is necessary to deliver certainty to American employers by allowing them to plan for future investment and lowering the cost of capital. They say it would encourage investment in retail businesses that frequently renovate their interiors, accelerate AMT credits for corporations that would otherwise derive no benefit from bonus depreciation to allow them to better access capital, and encourage growers of trees or vines to invest in their long-term crop businesses." [Congressional Quarterly, 7/7/14]
Opponents Note That The Permanently Extending Bonus Depreciation Negates Its Effectiveness. According to Congressional Quarterly, "They also express skepticism about the effectiveness of a permanent bonus depreciation, citing research that showed that the temporary nature of the policy as economic stimulus during the recession was critical to its effectiveness." [Congressional Quarterly, 7/7/14]