AEM calls on Congress to restore Section 179.
Press Release Summary:
June 17, 2014 - AEM has called on Congress to restore the small business expensing level, also known as Section 179 expensing, to its previous $500,000 level as well as make it permanent and indexed to inflation. Section 179 expensing gives small business owners more purchasing flexibility by allowing them to immediately deduct the cost of a qualified investment in the year of purchase rather than through multi-year depreciation. Change in tax rule would spur economic growth and job creation.
Original Press Release
AEM Calls on Congress to Restore Section 179 Small Business Expensing Level
Press release date: June 10, 2014
The Association of Equipment Manufacturers (AEM) has called on Congress to restore the small business expensing level, also known as Section 179 expensing, to its previous $500,000 level as well as make it permanent and indexed to inflation.
AEM joined with other groups, collectively representing hundreds of thousands of businesses, in signing a letter to Reps. Pat Tiberi (R-OH12) and Ron Kind (D-WI3) in strong support of their Section 179 expensing bill: H.R. 4457, the America’s Small Business Tax Relief Act of 2014.
Section 179 expensing gives small business owners – including farmers and contractors – more purchasing flexibility by allowing them to immediately deduct the cost of a qualified investment in the year of purchase rather than through multi-year depreciation. It is not a tax cut or loophole, the letter notes.
Allowing small business owners to maximize investing in their companies during years when they have positive cash flow gives them an incentive to reinvest, including purchasing items such as new equipment, which in turn accelerates economic expansion, growth and jobs, explained the letter.
Starting in 2003, Congress steadily increased the amount of investment that small businesses could expense from $25,000 to $500,000, the letter states, but the actions were always temporary. Beginning in 2014, the level reverted to $25,000 and will remain there unless Congress acts.
“Small businesses have been especially hard hit and still trying to recover from the Great Recession; permanent Section 179 expensing reduces uncertainty so owners can make longer-term business decisions that ensure their companies continue to grow and provide jobs. This legislation will help small businesses not only more easily reinvest in their businesses, but also invest in a stronger America,” stated AEM President Dennis Slater.
H.R. 4457 is scheduled to be on the floor of the House the week of June 9.
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