Senate Rejects Tax Deduction Bill
The U.S. Senate rejected a bill that would have restored for one year the bonus depreciation tax deduction for capital spending. The bill would have allowed businesses to deduct the entire cost of capital equipment, including trucks and trailers, in the first year the business owns the equipment, instead of spreading it over several years. The bonus depreciation deduction was first allowed in 2010 as part of the economic stimulus. It expired at the end of last year. A spokesman for the American Truck Dealers said the provision is unlikely to pass until the end of the year.