November 12, 2001—Congress is deliberating legislation to increase expensing and to accelerate depreciation of office furniture purchases, which should allow businesses to reduce their furniture costs. A stimulus package making its way through Congress contains a provision allowing 30% expensing of depreciable property during a three-year period. On a $1 million purchase of office furniture, this provision will save a business $140,000 or 14%, according to industry analysis. The provision has won bipartisan backing as a means to promote business investment and create jobs, after reports of nearly 10,000 jobs lost in the industry over the past year.
In addition to the stimulus package, recently introduced H.R. 3098 would speed up the timetable for businesses to write off depreciation of new office furniture. This bill reclassifies office furniture as a five-year property for purposes of accelerated depreciation. Currently, office furniture is listed as a seven-year property.
