House votes to give small businesses quicker tax writeoffs
By Richard Rubin Bloomberg News
WASHINGTON – Small businesses would be able to write off capital purchases more quickly under a $73.1 billion tax reduction passed Thursday by the U.S. House of Representatives.
The House voted 272-144 to revive the provision that lapsed at the end of 2013. The new measure would have no expiration date.
“This is, over the last 50 years, a tried-and-true provision that we know creates jobs,” said Rep. Pat Tiberi, an Ohio Republican. “And to provide certainty is so critical.”
Under current law, businesses can get immediate write-offs, without spreading deductions over several years, on purchases of up to $25,000. The benefit is phased out for companies with more than $200,000 in capital purchases.
The bill would raise those amounts to $500,000 and $2 million, the levels in place in 2013, and would index them to rise with the inflation rate. The proposal also would make it easier for companies to take the writeoff for spending on real property, heating and air conditioning units and off-the-shelf software.
Among the groups supporting the legislation are the American Sugarbeet Growers Association, the National Association of Convenience Stores and the U.S. Chamber of Commerce.
“Expensing does not lead to a loss of revenue to the government over the lifetime of an investment - it is not a matter of if revenue is collected, but when,” those groups and more than 150 others said in a June 9 letter to lawmakers.