Senate Majority Leader Mitch McConnell joined NFIB President and CEO Dan Danner today at a news conference in Washington, D.C., in support of a major tax package that includes permanent expensing for small business investments.
“On behalf of our members, I want to thank Senator McConnell for helping move this important legislation through Congress,” said Tom Underwood, state director of NFIB/Kentucky, the commonwealth’s leading small-business association. “This is a big deal for small, family businesses, because it’s going to make it easier for them to plan ahead and reinvest in their businesses.”
NFIB has worked for several years to make Section 179 of the IRS Tax Code permanent. Under that provision, businesses can expense up to $500,000 of new investment in heavy machinery, office equipment, computer technology or many other big-ticket items that they need. Small business expensing has been a feature of the tax code for decades as a way to encourage investment and growth. When the Bush tax cuts expired, however, the amount that small firms can expense dropped down to $25,000 and expires every year unless Congress extends it.
“For the past several years, Congress has waited until the last minute to increase and extend the provision, and that has left small businesses a lurch,” Underwood said. “It’s created a lot of uncertainty on the part of small businesses to make big investments in their own growth.”
The provision, part of House Resolution 2029, passed the House today by a vote of 318-109. Reps. Ed Whitfield, Brett Guthrie, Thomas Massie, Hal Rogers and Andy Barr voted “yes” on the measure.