This week the House of Representatives is scheduled to vote on a bipartisan bill which will help small businesses. The America’s Small Business Tax Relief Act (H.R. 4457) is legislations aimed at creating stability for small businesses, leading to their growth and expansion by making permanent small business expensing outlined in Section 179 of the tax code. A vote is scheduled for Thursday.
With respect to the expensing allowance for depreciable business property, The America’s Small Business Tax Relief Act of 2014 makes permanent: (1) the increased $500,000 allowance for such property, (2) the increased $2,000,000 threshold amount for such property over which the amount of
expensing allowance is reduced, (3) expensing of computer software, (4) rules for expensing of qualified real property (i.e., leasehold improvement, restaurant, and retain improvement property). Further, the bill adjusts for inflation.
Small business expensing allows business owners to immediately deduct the cost of a qualified investment in the year that it is purchased, rather than being forced to depreciate the cost of the investment over time. Since 2003, Congress has steadily increased the amount of investment that small businesses can expense from $25,000 to $500,000. Support for this expansion has been long-standing, bipartisan and widespread. Legislation expanding and/or extending small business expensing has been enacted eight times, across two Presidential Administrations and six Congresses, under both Democratic and Republican leadership. These higher expensing limits were temporary, however, and beginning in 2014 they reverted to $25,000 and will remain there unless Congress acts.
Many NAED members have come to rely on these increased allowances, which expired at the end of 2013. Contact Congress and urge their support of this bill.
Tagged with tED