Last week, the House approved H.R. 4457, the “America’s Small Business Tax Relief Act of 2014,” on a 277-144 vote. The legislation would permanently extend the tax code’s small business expensing provision – Section 179 – at a level of $500,000. It also would index the expensing amount to inflation. Small business expensing allows business owners, farmers and ranchers to deduct the cost of a qualified investment in the year that it is made rather than to depreciate the cost over time.
Since 2003, Congress increased the amount of investment that small businesses can expense from $25,000 to $500,000. Legislation expanding and/or extending the provision was enacted eight times, but the expensing limits were temporary, and, beginning in 2014, the amount reverted to $25,000. NPPC joined dozens of other agricultural and business organizations in urging House lawmakers to approve the tax legislation.
In a June 9 letter to bill sponsors Reps. Pat Tiberi, R-Ohio, and Ron Kind, D-Wis., the groups said permanent extension of Section 179 would increase investment and jobs, reduce tax complexity and paperwork and alleviate uncertainty for business owners, farmers and ranchers.