AIMM Act

Bill 119 s 559, also known as the "Permanently Extend Depreciation Allowance Act," aims to make a permanent change to the Internal Revenue Code of 1986. Specifically, this bill seeks to extend the allowance for depreciation, amortization, or depletion for the purpose of determining the income limitation on the deduction for business interest.

Currently, businesses are able to deduct interest expenses from their taxable income, but there is a limit on the amount of interest that can be deducted based on the business's income. This limitation is calculated using a formula that takes into account the business's adjusted taxable income, depreciation, amortization, and depletion expenses.

By permanently extending the allowance for depreciation, amortization, or depletion, this bill would ensure that businesses can continue to deduct these expenses when calculating the income limitation on the deduction for business interest. This could potentially provide businesses with more flexibility in managing their finances and could help to stimulate investment and growth in the economy. Overall, Bill 119 s 559 aims to provide businesses with a more stable and predictable tax environment by making this important provision a permanent part of the tax code.