House Votes To Make Small Business Tax Credits Permanent

Date: February 25, 2015

Bi-Partisan Vote Shows Strong Support for Small Business Priority

Despite a veto threat from the White House, the House overwhelmingly voted to make permanent an expired tax break to aid small business investment in equipment and property. The measure, known as America’s Small Business Tax Relief Act of 2015, would allow small businesses to immediately write off capital expenses of up to $500,000, instead of taking lesser deductions over several years. NFIB key voted the bill, which was also supported by over 170 business trade associations.  Bill sponsor Reps. Pat Tiberi argued that making the tax break permanent would provide stability for small businesses and eventually lead to economic growth. Thirty-three Democrats and all but one Republican voted for the bill, which passed 272-142, just short of the majority needed to override a presidential veto.

President Obama threatened to veto the legislation before the bill was considered because, according to the White House, it would add $79 billion to the budget deficit over the next decade. The White House says that while he supports making the tax break permanent, he wants to pay for it by eliminating other business tax breaks. Likewise, Democrats argue that they support the tax credits, but believe they should be considered as part of a broader overhaul of the tax code.

 

What This Means For Small Business:

While making the tax break permanent would provide much-needed stability to small businesses and spur economic growth, chances for this measure becoming law are uncertain, given the President’s veto threat and unknown prospects in the U.S. Senate.

 

 

Additional Reading:

Prior to consideration of this legislation, NFIB released a study showing that making the increased expensing levels permanent would provide up to 197,000 new jobs and $18.6 billion in higher economic productivity.  The Hill reports on the measure in its “Floor Action” blog, as do the AP, Bloomberg News, and the Vending Times.

 

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