OLYMPIA, Wash., Dec. 16, 2015—
At 2,009 pages, the political world has a lot to say today on the federal budget deal
posted online in the wee hours of the morning, and one provision in particular has Washington state small-business owners hoping Congress seals the deal on Friday and President Obama signs it.
The part of the bipartisan agreement making up to $500,000 of Section 179 expensing permanent, instead of year to year, has been a long-time lobbying goal of the National Federation of Independent Business, America’s largest and leading small-business association. When the Bush tax cuts expired, the amount that small firms could expense dropped down to $25,000 and expired every year, unless Congress extended it.
“Most small businesses don’t make major investments on a whim,” said NFIB/Washington State Director Patrick Connor. “They need predictability, particularly when it comes to budgeting for machinery, equipment, and other capital purchases – including the added cost of federal taxes on those purchases. Washington state small-business owners appreciate that Congress has finally gotten that message. It will give them the permanent tax certainty they need to replace and expand their tools, machinery, and other business equipment.”
Added Dan Danner, president and CEO of NFIB, “This is easily the most positive thing Congress has done for small business in the past several years, and it will ripple through the economy in the form of new investments and more jobs. The tax benefit encourages businesses to make big investments and the permanency creates predictability. Our research predicts that we’ll see hundreds of thousands of new jobs as a result.”
Under the Section 179 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. The tax package, which is expected to receive action tomorrow in the House and possibly in the Senate on Friday, will be a key vote for NFIB in the House and Senate.
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/Washington
711 Capitol Way South, Suite 505
Olympia, WA 98501