FROM THE OFFICE OF PUBLIC AFFAIRS

Increase incentives for businesses to grow:

• The bill increases the additional first-year “bonus” depreciation deduction from 30 percent to 50 percent for qualified investments made after May 5, 2003.  It also extends the sunset date for investment to qualify for bonus depreciation from September 11, 2004 to December 31, 2004.
• Benefits of the bonus depreciation provision:
• Provides an immediate investment stimulus by increasing the rate of bonus depreciation by 67 percent.  Businesses that invest to grow and expand will get assistance through this provision.
• Provides an investment stimulus for projects that require a longer lead time for planning and production by extending the qualifying period for bonus depreciation.