NFIB Demands Action on Small Business Expensing

Date: November 03, 2015

Business expensing (Section 179 in the tax code) allows small businesses to immediately deduct the full value of investments in equipment in the year that the investment is made, instead of depreciating the investments over time. This simplifies accounting and frees up cash to be reinvested in the business. There are limits, however, on the amount you can deduct in a year and on the types of property that qualify.

Last December, the president signed H.R. 5771, which restored the small business expensing level to $500,000 for tax year 2014. Unfortunately, this bill did not permanently restore the expensing limit. Therefore, at the beginning of this year, the expensing limit reverted to $25,000. Unless Congress acts to increase the level back to $500,000, small business owners will be faced with a massive tax hike.

TAKE ACTION: Tell Congress it's time to make increased small business expensing permanent! 

On November 4, NFIB sent a letter to Congressional Leadership asking for immediate action on this issue, noting that the current pattern of Congress acting at the last possible minute is "neither predictable for the business owner nor beneficial for the economy." The full letter can be found here.

If Congress permanently increases business expensing, a new study by the NFIB Research Foundation projects there would be 197,000 more jobs and $18.6 billion in higher economic productivity.View the study »

To help small businesses, higher limits and the inclusion of real property improvements should be made permanent. This will allow small businesses to plan for the future and expense additional investments, and therefore, enable those businesses to expand and create new jobs. NFIB urges Congress to take action and permanently extend the 2014 Section 179 expensing levels.

Reasons to support permanent 179 expensing

FOR YOUR BUSINESS: How to take the Section 179 tax deduction »

TAKE ACTION: Tell Congress it's time to make increased small business expensing permanent!

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