SANTA FE, N.M., Dec. 18, 2015—
It’s not often the small businesses of America get a break, so yesterday’s U.S. House vote
to make Section 179 expensing permanent was a huge victory, and the representative association for New Mexico’s Main Street entrepreneurs today thanked Reps. Michelle Lujan Grisham and Steve Pearce for their support in passing part of the federal budget deal onto the U.S. Senate.
“Congresswoman Lujan Grisham and Congressman Steve Pearce have earned the applause of every small-business owner in New Mexico,” said Minda McGonagle, New Mexico state director for the National Federation of Independent Business, America’s largest small-business association with 350,000 members nationwide, including more than 1,500 in New Mexico.
“What the two representatives did yesterday was show that there is a time for campaigning and a time for governing. The bipartisan passage of permanent Section 179 expensing was a great victory for governance. Now, it’s up to our two U.S. senators to do the same.”
Should reform of Section 179 of the IRS Tax Code become law, it would allow small businesses to expense up to $500,000 per year for big investments, such as machinery, equipment, technology and other capital upgrades. Without congressional action, the provision will expire at the end of this month, as it has every year for the past several years. Although Congress has voted consistently to extend it, the annual waiting game plays havoc on small-business finances and gums up their biggest financial decisions.
“Permanent expensing will allow small businesses to plan out their most important financial decisions,” said NFIB President and CEO Dan Danner. “The tax benefit encourages small businesses to invest in their own growth, and the permanency allows them to plan those investments instead of having to wait on Congress every year. This will be a big victory for small-business owners and its effects will ripple through the economy in the form of more investments, more business-to-business activity and more jobs.”
Added McGonagle, “Section 179 expensing doesn’t command a lot of media glamour, but it’s central to spurring business expansion from which job-creation naturally flows. Small-business owners could still use fewer regulations and lower taxes, but the one thing they have pleaded for most is predictability. Making Section 179 expensing permanent would do that.”
For more than 70 years, the National Federation of Independent Business has been the Voice of Small Business, taking the message from Main Street to the halls of Congress and all 50 state legislatures. NFIB annually surveys its members on state and federal issues vital to their survival as America’s economic engine and biggest creator of jobs. NFIB’s educational mission is to remind policymakers that small businesses are not smaller versions of bigger businesses; they have very different challenges and priorities.
National Federation of Independent Business/New Mexico