World Business News

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House backs two permanent US tax extenders

Zone(s): USA ¦ Sector(s): Taxation
[16 June 2014,] By Mike Godfrey,, Washington: On June 12, the Republican-led United States House of Representatives passed two bills to make permanent certain tax breaks for small businesses and S corporations, which were part of the pending “tax extenders” provisions that expired at the end of 2013.

The first bill, the America’s Small Business Tax Relief Act, 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 Subcommittee on Trade and Health, would permanently reinstate tax provisions that allow small businesses to immediately deduct the cost of investments in property and qualifying equipment.

On its expiry, the threshold for so-called Section 179 tax relief fell from $500,000 to $25,000. The bill passed by the House would reinstate the higher limit, with the deduction being phased out after investments exceed USD2m. Other provisions in the bill include adjustments for inflation, a repeal of the exclusion of air-conditioning and heating units from qualified expenses, and an elimination of the $250,000 limit on real property qualifying for expensing.

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