[Congressional Record Volume 156, Number 93 (Monday, June 21, 2010)]
[Senate]
[Pages S5203-S5204]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself and Mr. Grassley):
  S. 3513. A bill to amend the Internal Revenue Code of 1986 to extend 
for one year the special depreciation allowances for certain property; 
to the Committee on Finance.
  Mr. BAUCUS. Mr. President, over the past several months, we have seen 
some improvement in our economy.
  One year ago, in the first quarter of 2009, GDP was declining at an 
annual rate of more than 6 percent. Just 1 year later, in the first 
quarter of 2010, GDP grew at an annual rate of 3 percent.
  This marks the third consecutive quarter of real economic growth.
  It is not just the GDP that is growing. Consumer spending has risen 
at an annual rate of 3.5 percent this year. Manufacturing output rose 9 
percent over the first 4 months of the year. Businesses have increased 
spending on equipment and boosted their inventory investments.
  But one economic indicator continues to lag behind--employment.
  The national unemployment rate stands at 9.7 percent. Over the course 
of this Great Recession, the American economy has lost more than 8 
million jobs. In total, 15 million Americans remain out of work.
  We must act to create jobs and get Americans back to work.
  We began creating jobs with the 2009 Recovery Act. The nonpartisan 
Congressional Budget Office reports that last year's Recovery Act added 
1.2 to 2.8 million people to America's payrolls.
  In March, Congress passed the HIRE Act. The HIRE Act, which includes 
a payroll tax exemption for new hires, should help to bolster job 
creation in the coming months.
  This week, we are considering the American Jobs and Closing Tax 
Loopholes Act. That bill will create jobs by providing tax cuts and 
certainty to American businesses. It will create jobs by improving our 
nation's infrastructure. And it will create jobs by making direct 
investments in jobs for young adults and needy families.
  After we consider the American Jobs and Closing Tax Loopholes Act, 
the Senate will consider a small business jobs bill. The Finance and 
Small Business committees are currently writing that bill.
  Today, I am introducing another important jobs bill. This bill will 
extend bonus depreciation through 2010. I am introducing this extension 
as a stand-alone bill because of the unique ability of bonus 
depreciation to help businesses and create jobs.
  In 2008, Congress temporarily allowed businesses to recover the costs 
of certain capital expenditures more quickly than under ordinary 
depreciation schedules. The 2008 law allowed businesses to immediately 
write off 50 percent of the cost of depreciable property placed in 
service in 2008.
  The Recovery Act extended bonus depreciation. But the provision 
expired at the end of 2009.
  My bill would extend bonus depreciation to property placed in service 
in 2010.

[[Page S5204]]

  Bonus depreciation provides a double benefit. It helps two sets of 
businesses. It helps the business that purchases the equipment. It 
helps the business that sells the equipment.
  The businesses that purchase equipment can write off those purchases 
more quickly.
  This provides a significant tax savings. That savings makes equipment 
more affordable and encourages purchases.
  The savings gained from expensing, rather than the slower 
depreciation, allows businesses to use that money to invest in the 
business itself. Businesses can use those savings to hire employees.
  The more purchases that are made, the more other businesses are 
helped. This proposal will help manufacturers and suppliers to retain 
and hire employees as their businesses rebound.
  I have heard from a number of business owners in Montana that bonus 
depreciation has been extremely helpful for their business.
  An extension of bonus depreciation will boost economic activity by 
hundreds of millions of dollars. It will create hundreds of jobs in my 
home state of Montana.
  Bonus depreciation is a cost-effective provision that provides real 
relief for businesses. Bonus depreciation creates jobs.
  I urge my Colleagues to support this important bill.
                                 ______