September 29, 2016
WASHINGTON, D.C. — U.S. Sen. Jim Inhofe (R-Okla.) today introduced legislation that would make permanent the Indian Lands Accelerated Depreciation tax provision for property placed into service after December 2016. This new bill maintains the flexibility for a taxpayer to choose the depreciation schedule that best suits their needs, a tax code provision that is set to expire on Dec. 31, 2016.
“Congress continues to pass into law short-term extensions of the Indian Lands Accelerate Depreciation tax provision, and it is time to make this provision permanent,” Inhofe said. “This tax incentive has successfully spurred business development on current and former Indian lands, creating jobs and economy opportunity for a number of people in my state. By making this permanent, the tax code would provide a level of certainty for businesses to heavily consider a vast majority of Oklahoma when mapping out their investments beyond 2016."
On Dec. 18, 2015, Inhofe voted in favor of legislation that extended the Indian Lands Accelerated Depreciation tax provision through December 31, 2016. This provision encourages the development of business in Oklahoma by providing businesses that purchase capital equipment for use on former or current Indian lands. The provision allows businesses to depreciate property more than 40 percent faster than would otherwise be allowed. The provision included a modification sought by Sen. Inhofe that makes the provision elective to the taxpayer, providing Oklahoma companies with flexibility to choose the depreciation schedule that best suits their needs.
On April 15, 2015, Inhofe introduced S.947, legislation which would have made permanent the Indian Lands Accelerated Depreciation tax provision for property placed in service in 2015. The language of this legislation, as introduced, became obsolete when Congress passed a short-term extension of this provision in December 2015. Inhofe has introduced this legislation each Congress since 2005. This provision in the federal tax code would allow businesses that purchase capital equipment for use on former or current Indian lands to depreciate it more than 40 percent faster than would otherwise be allowed. The provision, which is currently temporary, was a leading reason Macy’s invested $170 million in a state-of-the-art facility in Owasso, Okla. that is expected to create 1,500 new permanent jobs and an additional 1,000 more during the Christmas shopping season.
Inhofe has been a longtime recipient of the National Taxpayers Union’s “Taxpayer’s Friend Award” and has also received the “Spirit of Enterprise Award” from the U.S. Chamber of Commerce for his pro-business record.