Measure Includes Return To $500,000 Expensing Limit
In a
76-16 vote late Tuesday, the Senate approved a House-passed measure to extend expiring tax provisions. The measure retroactively
extends small business expensing limits for tax year 2014 at $500,000.
The cap on deductions had fallen to $25,000 when the tax break expired in
January 2014. The measure renews the tax breaks retroactively, back to Jan. 1,
2014, but they are only applicable for the 2014 tax year, meaning they will
expire in two weeks on December 31, 2014.
NFIB manager of legislative affairs Matt Turkstra called the expensing limit
increase the “tax extenders” bill’s “most important provision,” noting, “It has
had a big impact” on the purchasing decisions of small-business owners. NFIB is
urging lawmakers to make the $500,000 expensing limit permanent.
What This Means For Small Business:
The
expensing provision is vital for small businesses. While having the
provision renewed for 2014 is welcome, small businesses need
the provision to be made permanent in order to provide
certainty going forward.
Additional Reading:
Among other media outlets, Forbes, Reuters, and the Wall Street Journal report on the Senate vote.
This news article is intended to keep small business owners apprised of current events that may affect them. It does not necessarily reflect NFIB’s policy position on such issues.
