Congress quietly makes permanent a corporate tax break worth billions
H.R. 1347 — AIMM Act · Filed by Adrian Smith (R-NE) · 21 cosponsors · Introduced Feb 13, 2025 · Referred to committee
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What it does
This bill makes permanent a tax rule that allows businesses to deduct depreciation, amortization, and depletion when calculating limits on how much business interest they can deduct. The rule was set to expire after 2021; this bill removes that expiration date, letting businesses use this deduction indefinitely going forward.
Why we flagged it
The bill's sole operative mechanism is to make permanent a tax deduction that benefits capital-intensive businesses. It is a straightforward tax expenditure — a reduction in federal revenue flowing to a narrow class of taxpayers — presented in plain language without concealment.
What the text implies
- The permanent extension locks in foregone federal revenue with no sunset review, making future deficit reduction or tax reform more difficult without explicit repeal of this provision.
- Businesses with high depreciation (real estate, manufacturing, infrastructure) gain a permanent competitive tax advantage over service businesses and smaller firms without substantial depreciable assets.
The full analysis lists 3 implications of this text.
Who stands to gain
real estate development and investment firms; manufacturing companies; infrastructure and capital-intensive industries