House Ways & Means Chairman Dave Camp (MI-04) has taken a step towards giving small
business owners greater tax certainty by addressing expired tax
provisions, including small business expensing, that are important to small
On April 29, the Committee marked up H.R. 4453, which would make permanent the 5-year recognition period
for built-in gains.
NFIB’s support for these provisions is outlined below:
- Permanently extending increased expensing levels
under section 179 addresses a core concern for small business owners: simplifying the tax code and reducing
- Expensing provides the majority of small business
owners with an immediate deduction for investments that help businesses grow,
which significantly improves cash flow.
- Because small business expensing levels have only
been increased on a temporary basis, at the beginning of this year they
returned to only $25,000 for 2014.
- Unless Congress acts, these lower expensing levels mean
that only 30 percent of NFIB members will receive the full benefit of business
expensing in 2014.
- The reduced recognition period for S corporation
built-in gains is another expired tax provision that helps the small business community.
- Unless Congress acts, many S corporations will have
to wait 10 years to access certain capital assets.
- Locking up a company’s capital for an entire decade
is simply too long and has a negative effect on cash flow—the life blood of