It has been over 30 years since Congress last rewrote the tax code. Since that time, it has tripled in size with pages and pages of special interest loopholes and rules that are unfair, com...
TIBERI PRO-GROWTH BILL TO BOOST SMALL BUSINESSES PASSES HOUSE
America’s Small Business Tax Relief Act Goes to Senate For Consideration
U.S. Congressman Pat Tiberi (R-OH) today announced his bill, H.R. 4457, America’s Small Business Tax Relief Act, passed the U.S. House of Representatives by a vote of 272-144. The bill would help create stability for small businesses leading to their growth and expansion by making permanent small business expensing outlined in Section 179 of the tax code.
“This is a commonsense bill that’s about supporting small business so they can create jobs,” Congressman Tiberi said. “My bill provides predictability by making permanent a small business expensing measure that’s been part of the tax code in some form since the 1950s. Business owners across Ohio have told me that the measure reduces compliance costs for small businesses, reduces the cost of capital, and improves cash flow allowing them to invest, expand, and create jobs. I am pleased my colleagues agree that creating stability for small business owners can grow the economy.”
From 2010-2013, the small business expensing rules outlined in Section 179 of the tax code allow small business owners, farmers, and ranchers to immediately deduct up to $500,000 in investments in property, equipment, and computer software rather than depreciating such costs over time. Under current law, however, that amount dropped significantly to $25,000 this year.
Over the years the deduction limit has varied; this year it dropped to $25,000 of qualifying property. The Tiberi bill would make permanent the levels effective during the 2010-2013 tax years allowing taxpayers to expense up to $500,000 of investments in new equipment and property, with the deduction phased out after investments exceed $2 million. These amounts would be adjusted for inflation. This would give job creators the certainty they need to grow their business, hire new workers and increase wages.
Support for making small business expensing permanent has been longstanding and widespread. Organizations like the National Federation of Independent Business, the Farm Bureau, the Associated Builders and Contractors, and the U.S. Chamber of Commerce support this bill. It now goes to the Senate for consideration.