House Republicans' Bill Extends Payroll Tax Break and 100% Bonus Depreciation for One Year

On December 9, House Republicans introduced their “Middle Class Tax Relief & Job Creation Act of 2011.” The bill would extend through 2012 the 2% reduction in workers' payroll tax and self-employment tax that's scheduled to expire at the end of 2011. It also would make a number of other tax changes, including the following:

RIA observation: Under current law, 50% bonus first-year depreciation is available for property placed in service in 2012. The bill doesn't appear to extend this rule to property placed in service in 2013.

The House Republicans' bill also includes a large assortment of non-tax-related revenue raisers, as well as a number of unrelated provisions, such as a permit for the Keystone XL oil pipeline from Canada to the U.S. Senate Democrats have predicted the House Republicans' bill won't pass the Senate in its current form, and the President has said he would veto any bill that linked quick approval of the Keystone XL pipeline to extending the payroll tax cut.

Source: Federal Tax Updates on Checkpoint News tab 12/1/2011