Senate Finance Committee Chairman Max Baucus (D-Mont.) June 29 unveiled wide-ranging legislation providing for roughly $12 billion in tax cuts aimed at small businesses, including a highly sought-after provision to extend bonus depreciation tax incentives through the end of 2010.
The bonus depreciation provision would allow businesses to recover up to 50 percent of the costs of certain capital expenditures for equipment placed into service during 2010, at a cost to the federal government of $5.5 billion over 10 years, according to a Finance Committee summary of the legislation.
Baucus’s legislation, a substitute amendment to the House-passed Small Business Lending Fund Act (H.R. 5297) introduced with Sen. Mary Landrieu (D-La.), also would allow for an increase in tax code Section 179 expensing limits for certain restaurant and retail real property.