(AEM)--AEM is supporting equipment manufacturers by calling on Congress to restore the small business expensing level, also known as Section 179 expensing, to $500,000.
AEM has joined other organizations 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 bill, H.R. 4457, the America’s Small Business Tax Relief Act of 2014.
This vital legislation would restore Section 179 expensing to $500,000, make it permanent, and index it to inflation.
Starting in 2003, the letter states, Congress steadily increased the amount of investment that small businesses could expense from $25,000 to $500,000. These higher expensing limits were temporary, however. Beginning in 2014, they reverted to $25,000 and will remain there unless Congress acts.
Section 179 expensing allows small business owners – including farmers and contractors – to immediately deduct the cost of a qualified investment in the year that it is purchased, rather than being forced to depreciate the cost of the investment over time.
Allowing small business owners to maximize investment in their companies during years when they have positive cash flow gives them an incentive to purchase items such as new equipment, which in turn fuels economic expansion, growth and jobs.
H.R. 4457 is scheduled to be on the floor of the House the week of June 9.