House Passes Bill to Bring Tax Certainty to Small Businesses

capitol-hillWASHINGTON — On Friday, February 13, the House of Representatives passed  by a vote of 272-142, H.R. 636, America’s Small Business Tax Relief Act, legislation introduced by Rep. Pat Tiberi (R-OH) and 14 co-sponsors that will make permanent important tax policies that will give small businesses the certainty they need to grow. Upon passage, Ways and Means Chairman Paul Ryan (R-WI) issued the following statement.

“Small businesses need more certainty to grow, and this bill will help them plan for the future. We still have a long way to go, but I see this as a down payment on a simpler, flatter, fairer tax code. That’s what we need to build a healthy economy and create jobs. And so I want to thank my colleagues for supporting this commonsense idea.”

Briefly, HR 436 makes permanent after 2014 the $500,000 allowance for the expensing of depreciable business property (section 179 property) and the $2 million threshold after which the amount of such allowance is reduced.

Both the allowance and the threshold amount are indexed for inflation for taxable years beginning after 2015.

The allowance is also made permanent for computer software and qualified real property (i.e., qualified leasehold improvement property, restaurant property, and retail improvement property), and the exclusion of air conditioning and heating units from the definition of section 179 property is eliminated.

Finally, the taxpayer is allowed to revoke an election to expense section 179 property without first obtaining consent from the Department of the Treasury.

HR 436 now goes to the Senate for consideration.

Notice: Theme without comments.php is deprecated since version 3.0.0 with no alternative available. Please include a comments.php template in your theme. in /home/www/amacsmallbiz/public_html/wp-includes/functions.php on line 4597

Leave a Reply

Your email address will not be published. Required fields are marked *