House Passes Permanent Depreciation Tax Break; Bill Aims to Boost Economic Growth; Faces Uncertain Fate in Senate
WASHINGTON--The House voted Friday to make permanent a depreciation tax break aimed at encouraging business investment and boosting the economy, but long-term prospects for the measure appeared dim, given its large impact on federal coffers.</br></br>The vote was 258 to 160, with more than 30 Democrats voting in favor of the break.</br></br>The Republican-backed proposal would allow businesses to deduct 50% of many equipment purchases and other investments up front. It has been in effect in various forms for much of the last decade. But the tax break always has been temporary.</br></br>House Republicans view a permanent extension as a way to give a jolt to the economy and job creation, at a time when partisan disagreements are blocking a broader overhaul of the tax system. The House has held a series of votes in recent weeks to permanently extend other business-friendly temporary tax breaks, such as a research credit. Republicans said the extensions are steps toward a tax overhaul.</br></br>"By making long-standing features of the tax code permanent, we can facilitate a comprehensive overhaul of the tax code," House Ways and Means Chairman Dave Camp (R., Mich.) said during a House floor debate. "Such an overhaul, in turn, will create an America that works, with a strong, vibrant economy."