Producer, contractor coalition books favorable depreciation, expensing levels in federal tax package

Sources: National Ready Mixed Concrete Association, Silver Spring, Md.; CP staff

A tax extenders package accompanying the $1.15 trillion Consolidated Appropriations Act of 2016 Congress passed ahead of the holiday break has two major provisions benefitting concrete producers and their contractor customers: an extension of the 50 percent bonus depreciation for capital equipment purchased in 2015–2017, phasing to 40 percent and 30 percent in 2018 and 2019; and, permanent extension of Section 179 expensing limits and phase-out amounts, $500,000 and $2 million, respectively, that were in place from 2010 through 2014 but lapsed to $25,000 and $200,000 this year.

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