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Permanent US Small Business Expensing Urged
Zone(s): USA ¦ Sector(s): Tax
Section 179 tax relief is one of the pending “tax extenders” provisions that expired at the end of 2013. As a result of its expiry, the threshold for the deduction fell from $500,000 to $25,000.
Currently, the House Ways and Means Committee is considering renewing the provision permanently at a reduced USD250,000 level, or, under proposals from the Senate Finance Committee, the tax break could be extended for two years at USD500,000. However, either renewal proposal could take some time to pass through Congress as the tax extenders as a whole are currently stalled, particularly in the Senate.
The proposed bill, introduced by the Chairman of the Ways and Means Subcommittee on Select Revenue Measures, Pat Tiberi (R – Ohio), and Ron Kind (D – Wisconsin), a member of the Ways and Means Subcommittees on Trade and Health, would provide for a permanent renewal of the tax break at the higher level.