"Together, bonus depreciation and increased small business expensing provisions have given small businesses accelerated tax savings during uncertain times in our economy," Lugar said.

The carryback period was extended for the business credit, along with the bonus depreciation.

"Qualified therapeutic discovery project" expenditures will not qualify for the R&D credit, orphan drug credit, or bonus depreciation.

It also increased first-year bonus depreciation to 50 percent from 30 percent.

Alarmed about a drop in business spending, the administration pushed through a generous "bonus depreciation" that let corporations immediately write off one-third of their investment in many kinds of equipment.

It also noted that a big source of the inequity was a special bonus depreciation for business that is set to expire this year.

With his leadership we hope that we will not only win an extension, but eventually make the bonus depreciation and small business expensing provisions permanent.

Bonus Depreciation: Extends the increased bonus depreciation for businesses making investments in new plants and equipment in 2009.

In 2002 and the two following years, companies receive "bonus depreciation" that speeds up the write-offs of capital equipment.

"There is good news in terms of extended unemployment benefits, bonus depreciation and other measures," said Senator Charles E. Grassley, Republican of Iowa.