Frequently Asked Questions
Guidelines for Citing BEA Information | ID: 999 | Created: May-26-2011
The large decrease in the first-quarter capital consumption adjustment primarily reflects an increase in “bonus depreciation” offsets for qualified purchases made during 2010 and 2011 under the Tax Relief, Unemployment Insurance and Job Creation Act of 2010 (TRUIRJCA) and a decrease in the percent of bonus depreciation that businesses are allowed to claim under the act for qualified investments in 2012. TRUIRJCA provides for 50 percent bonus depreciation for qualified investments placed in service during 2012, compared with 100 percent bonus depreciation allowed under the act during 2011.
The capital consumption adjustment (CCAdj) for domestic business declined significantly in the first quarter of 2012 because of a large decrease in capital consumption allowances (CCA) without a corresponding decrease in consumption of fixed capital (CFC). CCAdj converts depreciation that is reported on tax returns on a historical-cost (or “book-value”) tax basis –- CCA -- to depreciation that is on a current-cost basis –– CFC –- and is derived as the difference between CCA and CFC. Special legislative acts, such as TRUIRJCA, include provisions for bonus depreciation that are reflected in the CCA over the time period covered by the acts, but they do not affect CFC. As the acts expire, bonus depreciation that is claimed must be offset as deductions in CCA in future periods.
Source data used to estimate the value of bonus depreciation is from the Treasury Department’s Office of Tax Analysis (OTA) and is subject to periodic revision.
For information on how previous economic stimulus acts affected depreciation and the capital consumption adjustment estimates, please see FAQ number 1002, "How do the economic stimulus acts impact NIPA Corporate Profits?"
/1/ These estimates are presented in NIPA Table 1.7.5.
Ask us a question...
Double check that email address! | We won't be able to contact you if it is incorrect.
Why the math question? | This helps stop malicious programs from using this site to generate SPAM email.
Please allow us some time | It could take up to two(2) business days for our Subject Matter Experts to follow up with an appropriate answer to your question(s). Your patience is very much appreciated.
Using the FAQ database
All FAQs are displayed when first visiting the page. They are ordered by most recent or recently updated and can be filtered by keyword search term, by category, and by manually selecting the page number buttons. To view any FAQ, click on the title to open the answer. Submitting a question is done by selecting the “Ask a question” tab along the top of the FAQ.
Selecting an FAQ
Clicking on the title of the FAQ will bring up the answer to the FAQ. Navigating back to the list of FAQs is done by selecting the tab “Back to FAQs”. A tab to ask a question specifically about this FAQ can be found at the top of the answer. Also, the FAQ id and date this FAQ was created or last modified is shown in the upper right hand corner.
Searching the FAQs
Enter a keyword search term and click the Search button to narrow FAQ selections. To return to all FAQs, click the Clear button or clear the keyword search field and click the Search button.
Filtering FAQs by category
Chose the category to filter by and click Apply button. This will display only the FAQs related to an assigned category. To return to all FAQs click the Clear button next to the search by keyword field or select ALL from the drop down menu and click Apply button.