Congress has passed a spending bill that includes a permanent reinstatement of Section 179 bonus depreciation. President Obama is expected to sign the legislation, labeled the Protecting Americans from Tax Hikes Act (PATH), which also increased the expensing level to $500,000. The allowance had been $25,000.
The bonus depreciation is immediate, which means 2015 purchases can be included. For 2015, the bonus depreciation would be 50 percent. The phase out cap is set at $2 million.