FROM THE OFFICE OF PUBLIC AFFAIRS
January 24, 2002PO-947
DEPRECIATION AMENDMENT BEFORE THE SENATE
The economic stimulus bill under consideration in the Senate includes a 30% bonus depreciation provision which expires in one year. Senator Gordon Smith has introduced an amendment for consideration on the Senate floor that would make the same bonus depreciation available for 3 years. Treasury Secretary Paul O'Neill made the following comment:
The short period of eligibility for new investment under the base proposal would result in no stimulus to the kind of job creating major projects that are fundamental to our growing economy. Under the base proposal, a project begun tomorrow must be completed by December 31 of this year to get any benefit. Senator Gordon Smith is right to propose an amendment extending the 30% bonus depreciation provisions to 3 years, so that more investment takes place and more jobs are created. Senator Smith's amendment greatly enhances the job creation that will be generated by the bonus depreciation provisions under consideration in the Senate.