* Accelerated depreciation tax break has bipartisan backing
* Congress edges toward debate on tax code revamp
* 26 companies paid no federal income tax 2008-11: tax group
WASHINGTON, April 9 (Reuters) - More than two dozen Fortune 500 companies paid no U.S. federal income taxes in recent years partly because of a corporate tax break that is broadly supported by Republicans and Democrats alike, a consumer group said on Monday.
In at least half of the cases cited by the group, companies made use of accelerated depreciation, a tax provision that allows increased deductions in the early years of the life of an asset.
Citizens for Tax Justice, which advocates steeper corporate taxes, said it surveyed major U.S. companies and found that 26 on average paid no net federal income taxes between 2008 and 2011, among them General Electric and Duke Energy .
"This isn't fair to the rest of us," said Bob McIntyre, director of the left-leaning tax research group.
"Things do not get changed in the tax code unless someone asks," McIntyre said, blaming company lobbying for a failure to thoroughly overhaul the U.S. tax code in 25 years.
Accelerated depreciation will cost the U.S. Treasury $37 billion between 2010 and 2014, according to a recent estimate by Congress's Joint Committee on Taxation.
Still, both President Barack Obama and Republicans have backed an expansion of the tax break through bonus depreciation, which gives companies an even faster and larger first-year write-off. Many policymakers backing accelerated depreciation have cited the need to jump-start the economic recovery.
Disparate tax rates between companies that heavily use accelerated depreciation and those that cannot is among inequities that are prompting lawmakers to begin debate on simplifying the tax code through a major rewrite. The last such rewrite occurred 25 years ago under President Ronald Reagan.
The U.S. government's corporate tax receipts have been dwindling for decades, in part because of a plethora of special tax provisions in the code.
Revenue from corporate income taxes fell from between 5 percent and 6 percent of gross domestic product in the early 1950s to about 1.3 percent of GDP in 2010, according to the Tax Policy Center, another tax research group.
General Electric keeps its tax rate low -- an average negative 19 percent between 2008 and 2011 -- primarily by using tax benefits from its leasing business to offset profits in other units, such as the company's finance arm, McIntyre said.
"All of our businesses, to some extent, have a lower total tax liability as a result of tax incentives at the federal, state or local level for certain investments and activities," GE spokesman Andrew Williams said.
GE will pay U.S. taxes of about $1 billion for 2011 after three years of having paid no cash taxes, according to CTJ.
The company did not dispute those figures but said it will pay $2.9 billion for 2011 across all the countries where it operates.
Duke Energy's average negative 3.5 percent tax rate over the four-year period largely resulted from accelerated depreciation, according to the CTJ study.
Duke spokesman Tom Williams said the study is misleading.
"We're in a modernization phase now and we'll have four new plants by the end of this year," Williams said. "They cost $7 billion and so we're taking the tax benefits allowed."
Williams said the taxes will be paid eventually over the life of the assets. McIntyre said that may be true in some cases, but the companies can keep deferring taxes by generating more depreciation breaks.
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.